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Trust0001408970false2013-11-012013-11-012013-10-28AGLSACCUGTAARRGRGIVEFWDDFWDIFWDBMATHMINCHYLDDBIZQEHHDGEVEGATTFSAADR<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">ACCUVEST GLOBAL LONG SHORT ETF (NYSE Arca Ticker: AGLS)</font></b></p><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">INVESTMENT OBJECTIVE<br /></font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:1.0pt;line-height:normal;">&#160;</font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Accuvest Global Long Short ETF (the &#8220;Fund&#8221;) seeks to provide average annual returns in excess of the total return of the MSCI World Index (the &#8220;Index&#8221;).</font></p><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">FUND FEES AND EXPENSES<br /></font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">SHAREHOLDER FEES </font></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">(fees paid directly from your investment)</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> None </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">ANNUAL FUND OPERATING EXPENSES </font></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">(expenses that you pay each year as a percentage of the value of your investment)</font></i></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule3 ~</div><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">EXAMPLE</font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">This Example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other funds. This Example does not take into account creation or redemption transaction fees, or the brokerage commissions that you pay when purchasing or selling shares of the Fund. If these fees and commissions were included, your costs would be higher. </font></p><div align="left"><table border="0" cellpadding="0" cellspacing="0" style="width:100%;"> <tr> <td width="100%" style="padding:0in 0in 0in 0in;"></td> </tr><tr> <td width="100%" style="padding:0in 0in 0in 0in;"></td> </tr></table></div><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"><br /> The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund&#39;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</font></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule4 ~</div><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PORTFOLIO TURNOVER<br /></font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund&#39;s performance. This rate excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund&#39;s shares. During the most recent fiscal year ended June 30, 2013, the Fund&#39;s portfolio turnover rate was 270% of the average value of its portfolio.</font></p><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PRINCIPAL INVESTMENT STRATEGIES<br /></font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund is considered a &#8220;fund of funds&#8221; that seeks to achieve its investment objective by primarily investing in both long and short positions in other exchange-traded funds (the &#8220;Underlying ETFs&#8221;) that offer diversified exposure to global regions, countries, styles (market capitalization, value, growth, etc.) or sectors, and other exchange-traded products, including, but not limited to, exchange-traded notes (&#8220;ETNs&#8221;) and exchange-traded currency trusts (collectively with Underlying ETFs, &#8220;ETPs&#8221;). </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Accuvest Global Advisors (the &#8220;Sub-Advisor&#8221;) seeks to achieve the Fund&#39;s investment objective by taking long positions in the Underlying ETFs that invest in what it believes to be the most relatively attractive global regions and countries within those regions and by taking short positions, by entering into short sales, in the Underlying ETFs that invest in what it believes to be the most relatively unattractive global regions and countries within those regions. In establishing such positions, the Fund seeks to profit from the relative performance between the long and short positions in global regions, countries, styles or sectors. From time to time, the Fund may have directional exposure to seek to profit by being net long when stock markets are rising and net short when markets are falling.</font></p><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PRINCIPAL RISKS OF INVESTING IN THE FUND<br /></font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund is subject to a number of risks that may affect the value of its shares, including:</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Allocation Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund&#39;s particular allocations may have a significant effect on the Fund&#39;s performance. Allocation risk is the risk that the selection of ETPs and the allocation of assets among such ETPs will cause the Fund to underperform other funds with a similar investment objective that do not allocate their assets in the same manner or the market as a whole. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Early Closing Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">An unanticipated early closing of the NYSE Arca, Inc. (the &#8220;Exchange&#8221;) may result in a shareholder&#39;s inability to buy or sell shares of the Fund on that day.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">ETN Risk.</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> ETNs are senior, unsecured unsubordinated debt securities issued by an underwriting bank that are designed to provide returns that are linked to a particular benchmark less investor fees. ETNs have a maturity date and generally, are backed only by the creditworthiness of the issuer. As a result, the value of an ETN may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in the underlying market (</font><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">e.g.</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">, the commodities market), changes in the applicable interest rates, and changes in the issuer&#39;s credit rating and economic, legal, political or geographic events that affect the referenced market. ETNs also may be subject to commodities market risk and credit risk.&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Liquidity Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Liquidity risk exists when particular Fund investments are difficult to purchase or sell. This can reduce the Fund&#39;s returns because the Fund may be unable to transact at advantageous times or prices. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Portfolio Turnover Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund may experience relatively high portfolio turnover, which may result in increased transaction costs and lower Fund performance. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Premium-Discount Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund&#39;s shares may trade above or below their net asset value (&#8220;NAV&#8221;). The trading price of the Fund&#39;s shares may deviate significantly from their NAV during periods of market volatility. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Short Sales Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Short sales are transactions in which the Fund sells a security it does not own. To complete the transaction, the Fund must borrow the security to make delivery to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of replacement. The price at such time may be higher or lower than the price at which the security was sold by the Fund. If the underlying security goes down in price between the time the Fund sells the security and buys it back, the Fund will realize a gain on the transaction. Conversely, if the underlying security goes up in price during the period, the Fund will realize a loss on the transaction. Any such loss is increased by the amount of premium or interest the Fund must pay to the lender of the security. Likewise, any gain will be decreased by the amount of premium or interest the Fund must pay to the lender of the security. Because a short position loses value as the security&#39;s price increases, the loss on a short sale is theoretically unlimited. Short sales involve leverage because the Fund borrows securities and then sells them, effectively leveraging its assets. The use of leverage may magnify gains or losses for the Fund.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Tax Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">In order to qualify for the favorable U.S. federal income tax treatment accorded to regulated investment companies (&#8220;RICs&#8221;), the Fund must derive at least 90% of its gross income in each taxable year from certain categories of income (&#8220;qualifying income&#8221;). Certain of the Fund&#39;s investments may generate income that is not qualifying income. If the Fund were to fail to meet the qualifying income test and fail to qualify as a RIC, it would be taxed in the same manner as an ordinary corporation, and distributions to its shareholders would not be deductible by the Fund in computing its taxable income. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Trading Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Although the Fund&#39;s shares are currently listed on the Exchange, there can be no assurance that an active trading market for shares will develop or be maintained. In addition, trading in shares of the Fund may be halted because of market conditions or for reasons that, in the view of the Exchange, make trading in shares inadvisable. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">ETP Investment Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Through its investments in the ETPs, the Fund will be subject to the risks associated with such investment vehicles&#39; investments, or reference assets in the case of ETNs, including the possibility that the value of the securities or instruments held or tracked by an ETP could decrease. These risks include any combination of the risks described below, as well as the risks described above. The Fund&#39;s exposure to a particular risk will be proportionate to the Fund&#39;s overall allocation to the ETPs and their exposure to various security types, currencies, market sectors and geographic regions. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Credit Risk </font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">. Certain of the ETPs are subject to the risk that a decline in the credit quality of a portfolio investment or a counterparty to a portfolio investment could cause the ETP&#39;s share price to fall. The ETPs could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Emerging Markets Risk </font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">. 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Certain of the ETPs may not hedge against the risk of currency exchange rate fluctuations, while other ETPs may if there is volatility in currency exchange rates. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Foreign Securities Risk </font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">. An ETP&#39;s investments in or exposure to foreign issuers involve certain risks including, but not limited to, risks of adverse changes in foreign economic, political, regulatory and other conditions, or changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges). In certain countries, legal remedies available to investors may be more limited than those available with respect to investments in the United States. In addition, the securities of some foreign companies may be less liquid and, at times, more volatile than securities of comparable U.S. companies. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Geographic Investment Risk </font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">. An ETP may invest in or have exposure to the securities of issuers organized in one or more jurisdictions around the world, or in securities or instruments that provide exposure to such issuers. Such an ETP is likely to be impacted by economic conditions or events affecting the particular market or markets to which it is exposed. As of the date of this Prospectus, the Fund is expected to have significant exposure to the region listed below. The Sub-Advisor anticipates, however, that the Fund&#39;s exposure to particular regions and countries will vary greatly and may change frequently. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p> <p style="margin-bottom:.0001pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">ASIA. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">To the extent an ETP has significant investment exposure to Asia, the ETP will be susceptible to loss due to adverse market, political, regulatory, and geographic events affecting that region. 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The Fund may experience losses with respect to its investment in an ETP. Further, there is no guarantee that an ETP will achieve its objective. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Large-Capitalization Risk </font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">. An ETP may invest in or have exposure to large-capitalization companies. 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Risks commonly associated with the direct ownership of real estate include fluctuations in the value of underlying properties, defaults by borrowers or tenants, changes in interest rates and risks related to general or local economic conditions. REITs are more dependent upon specialized management skills, have limited diversification and are, therefore, generally dependent on their ability to generate cash flow to make distributions to shareholders. 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In particular, small-cap companies may have limited product lines, markets, and financial resources and may be dependent upon a relatively small management group. These securities may be listed on an exchange or trade over-the-counter, and may or may not pay dividends. During a period when the performance of small-cap stocks falls behind that of other types of investments, such as large-cap stocks, the ETP&#39;s performance could be adversely affected. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">As with any fund, there is no guarantee that the Fund will achieve its investment objective.</font></p><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">FUND PERFORMANCE<br /></font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The bar chart and table that follow show how the Fund has performed on a calendar year basis and provide an indication of the risks of investing in the Fund. The table also shows how the Fund&#39;s performance compares to the MSCI World Index, which is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed markets. Both the bar chart and the table assume the reinvestment of all dividends and distributions. Past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Updated performance information is available on the Fund&#39;s website at www.advisorshares.com.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund&#39;s name and investment sub-advisor changed effective December 1, 2011. Prior to December 1, 2011, the Fund was named &#8220;Mars Hill Global Relative Value ETF&#8221; and sub-advised by Mars Hill Partners, LLC. While the Fund&#39;s investment objective and principal investment strategies remain substantially the same, the performance prior to December 1, 2011 may not be indicative of the Fund&#39;s performance under the new Sub-Advisor.</font></p><div style="display:none">~ http://www.advisorshares.com/role/RRBarChart5 ~</div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund&#39;s year-to-date total return as of September 30, 2013 was -3.38%.<br /> </font><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Best and Worst Quarter Returns (for the period reflected in the bar chart above)</font></b></p> <div align="left"><table border="0" cellpadding="0" cellspacing="0" style="width:100%;"> <tr> <td width="67%" style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td valign="bottom" width="6%" style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td width="6%" style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td width="2%" style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td valign="bottom" width="1%" style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td width="18%" style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> </tr><tr> <td nowrap="nowrap" valign="bottom" width="67%" style="border-bottom:solid black 1.5pt;border-left:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Return </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; 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Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font color="black" lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">SHAREHOLDER FEES </font></b><i><font color="black" lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">(fees paid directly from your investment)</font></i><font color="black" lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> None</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font color="black" lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">ANNUAL FUND OPERATING EXPENSES </font></b><i><font color="black" lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">(expenses that you pay each year as a percentage of the value of your investment)</font></i></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule8 ~</div><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">EXAMPLE</font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">This Example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other funds. This Example does not take into account creation or redemption transaction fees, or the brokerage commissions that you pay when purchasing or selling shares of the Fund. If these fees and commissions were included, your costs would be higher. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: </font></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule9 ~</div><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PORTFOLIO TURNOVER<br /></font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund&#39;s performance. This rate excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund&#39;s shares. During the most recent fiscal year ended June 30, 2013, the Fund&#39;s portfolio turnover rate was 100% of the average value of its portfolio. </font></p><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PRINCIPAL INVESTMENT STRATEGIES<br /></font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund is a &#8220;fund of funds&#8221; that seeks to achieve its investment objective by investing primarily in other exchange-traded funds (the &#8220;Underlying ETFs&#8221;). Accuvest Global Advisors (the &#8220;Sub-Advisor&#8221;) seeks to achieve the Fund&#39;s investment objective by investing in Underlying ETFs that provide diversified exposure to select economies around the world. The Sub-Advisor ranks countries on a monthly basis using its proprietary country ranking model in order to determine their relative attractiveness. The Sub-Advisor then endeavors to invest in Underlying ETFs, which may be both affiliated and unaffiliated with the Fund, that individually or in combination correspond generally to the price and yield performance of the specific countries (or regions) identified as most attractive by the model. The Sub-Advisor believes that attractive returns can only be achieved by actively structuring portfolios distinct from simply tracking market indices. 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In addition, trading in shares of the Fund may be halted because of market conditions or for reasons that, in view of the Exchange, make trading in shares inadvisable. </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Underlying ETF Investment Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Through its investments in the Underlying ETFs, the Fund will be subject to the risks associated with the Underlying ETFs&#39; investments, including the possibility that the value of the securities held by an Underlying ETF could decrease. These risks include any combination of the risks described below, as well as certain of the risks described above. 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As such, each Underlying ETF is likely to be impacted by economic conditions or events affecting the particular market or markets reflected by its name. As of the date of this Prospectus, the Fund is expected to have significant exposure to the regions listed below. 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Of course, once the Fund has performance, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.</font></p><p style="margin-bottom:.0001pt;margin-left:85.5pt;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Updated performance information is available on the Fund&#39;s website at www.advisorshares.com.</font></p>0.00950.00000.00590.00560.0210-0.00290.018118463111042412<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">CAMBRIA GLOBAL TACTICAL ETF (NYSE Arca Ticker: GTAA)</font></b></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">INVESTMENT OBJECTIVE</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Cambria Global Tactical ETF (the &#8220;Fund&#8221;) seeks to preserve and grow capital from investments in the U.S. and foreign equity, fixed income, commodity and currency markets, independent of market direction.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">FUND FEES AND EXPENSES</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. 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This Example does not take into account creation or redemption transaction fees, or the brokerage commissions that you pay when purchasing or selling shares of the Fund. If these fees and commissions were included, your costs would be higher. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</font></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule12 ~</div><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PORTFOLIO TURNOVER</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund&#39;s performance. This rate excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund&#39;s shares. 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There can be no guarantee that shares of a closed-end held by the Fund will not trade at a persistent and ongoing discount. Nor can there be any guarantee that an active market in shares of closed-end funds held by the Fund will exist. The Fund may not be able to sell closed-end fund shares at a price equal to the NAV of the closed-end fund.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Early Closing Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">An unanticipated early closing of NYSE Arca, Inc. 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The trading price of the Fund&#39;s shares may deviate significantly from their NAV during periods of market volatility. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Tax Risk.</font></b><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">In order to qualify for the favorable U.S. federal income tax treatment accorded to regulated investment companies (&#8220;RICs&#8221;), the Fund must derive at least 90% of its gross income in each taxable year from certain categories of income (&#8220;qualifying income&#8221;). Certain of the Fund&#39;s investments may generate income that is not qualifying income. 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In addition, trading in shares of the Fund may be halted because of market conditions or for reasons that, in view of the Exchange, make trading in shares inadvisable. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">ETP Investment Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Through its investments in ETPs, the Fund will be subject to the risks associated with such vehicles&#39; investments, or reference assets in the case of ETNs, including the possibility that the value of the securities or instruments held by an ETP or an ETN&#39;s reference asset could decrease. These risks include any combination of the risks described below, as well as certain of the risks described above. The Fund&#39;s exposure to a particular risk will be proportionate to the Fund&#39;s overall allocation to the ETPs and their exposure to various security types and geographic regions. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Commodity Risk </font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">. Because certain of the ETPs may have a significant portion of their assets exposed directly or indirectly to commodities or commodity-linked securities, developments affecting commodities may have a disproportionate impact on such ETPs. An ETP&#39;s investment in commodities or commodity-linked derivative instruments may subject the ETP (and indirectly the Fund) to greater volatility than investments in traditional securities, particularly if the instruments involve leverage. The value of commodities and commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. </font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Credit Risk </font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">. Certain of the ETPs are subject to the risk that a decline in the credit quality of a portfolio investment or a counterparty to a portfolio investment could cause the ETP&#39;s share price to fall. The ETPs could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. </font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Emerging Markets Risk </font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">. 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Certain of the ETPs may not hedge against the risk of currency exchange rate fluctuations, while other ETPs may if there is volatility in currency exchange rates. </font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Foreign Securities Risk </font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">. An ETP&#39;s investments in, or exposure to, foreign issuers involve certain risks including, but not limited to, risks of adverse changes in foreign economic, political, regulatory and other conditions, or changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges). In certain countries, legal remedies available to investors may be more limited than those available with respect to investments in the United States. In addition, the securities of some foreign companies may be less liquid and, at times, more volatile than securities of comparable U.S. companies. </font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Interest Rate Risk </font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">. An ETP&#39;s investments in or exposure to, fixed income securities are subject to the risk that interest rates rise and fall over time. As with any investment whose yield reflects current interest rates, an ETP&#39;s yield will change over time. During periods when interest rates are low, an ETP&#39;s yield (and total return) also may be low. To the extent that the investment advisor or issuer of an ETP anticipates interest rate trends imprecisely, the ETP could miss yield opportunities or its share price could fall. </font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Real Estate Investment Trusts (REITs) Risk </font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">.</font><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Certain of the ETPs invest in REITs. An ETP&#39;s investments in REITs will be subject to the risks associated with the direct ownership of real estate. Risks commonly associated with the direct ownership of real estate include fluctuations in the value of underlying properties, defaults by borrowers or tenants, changes in interest rates and risks related to general or local economic conditions. REITs are more dependent upon specialized management skills, have limited diversification and are, therefore, generally dependent on their ability to generate cash flow to make distributions to shareholders. In addition, REITs have their own expenses, and the ETP will bear a proportionate share of those expenses. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">As with any fund, there is no guarantee that the Fund will achieve its investment objective.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">FUND PERFORMANCE</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The bar chart and table that follow show how the Fund has performed on a calendar year basis and provide an indication of the risks of investing in the Fund. The table also shows how the Fund&#39;s performance compares to the S&amp;P 500 Index, which is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. Both the bar chart and the table assume the reinvestment of all dividends and distributions. Past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Updated performance information is available on the Fund&#39;s website at </font><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">www.advisorshares.com</font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">. </font></p><div style="display:none">~ http://www.advisorshares.com/role/RRBarChart13 ~</div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund&#39;s year-to-date total return as of September 30, 2013 was -1.02%. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Best and Worst Quarter Returns (for the period reflected in the bar chart above)</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <div align="left"><table border="0" cellpadding="0" cellspacing="0" style="border-collapse:collapse;width:100%;"> <tr> <td valign="top" width="60%" style="border-bottom:solid black 1.0pt;border-left:solid black 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td valign="top" width="20%" style="border-bottom:solid black 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Return </font></b></p> </td> <td valign="top" width="20%" style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Quarter/Year </font></b></p> </td> </tr> <tr> <td valign="top" width="60%" style="background:#CCEEFF;border-bottom:solid black 1.0pt;border-left:solid black 1.0pt;padding:0in 0in 0in 9.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Highest Return </font></p> </td> <td valign="top" width="20%" style="background:#CCEEFF;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">3.84% </font></p> </td> <td valign="top" width="20%" style="background:#CCEEFF;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">1Q/2012 </font></p> </td> </tr> <tr> <td valign="top" width="60%" style="background:white;border-bottom:solid black 1.0pt;border-left:solid black 1.0pt;padding:0in 0in 0in 9.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Lowest Return </font></p> </td> <td valign="top" width="20%" style="background:white;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">-7.79% </font></p> </td> <td valign="top" width="20%" style="background:white;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">3Q/2011 </font></p> </td> </tr> </table></div><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDING DECEMBER&#160;31, 2012</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule14 ~</div>0.00900.00000.00250.00440.0159-0.00000.01591615018641885-0.07340.0666Return Before Taxes Based on NAVReturn After Taxes on DistributionsReturn After Taxes on Distributions and Sale of Fund SharesS&P 500 Index (Reflects no deduction for fees, expenses, or taxes)0.06660.05950.04460.160.00620.00130.00310.08172010-10-252010-10-252010-10-252010-10-25<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:12.0pt;line-height:normal;">AdvisorShares Global Alpha &amp; Beta ETF (NYSE Arca Ticker: RRGR)</font></b></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">INVESTMENT OBJECTIVE &#160;</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The AdvisorShares Global Alpha &amp; Beta ETF (the &#8220;Fund&#8221;) seeks long-term capital growth.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">FUND FEES AND EXPENSES</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. 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This Example does not take into account creation or redemption transaction fees, or the brokerage commissions that you pay when purchasing or selling shares of the Fund. If these fees and commissions were included, your costs would be higher. <br /> <br /></font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</font></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule17 ~</div><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PORTFOLIO TURNOVER</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund&#39;s performance. This rate excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund&#39;s shares. For the period from July 10, 2012, the Fund&#39;s commencement of operations, through the most recent fiscal year ended June 30, 2013, the Fund&#39;s portfolio turnover rate was 43% of the average value of its portfolio.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PRINCIPAL INVESTMENT STRATEGIES</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund is, in part, a &#8216;&#8216;fund of funds&#39;&#39; that seeks to achieve its investment objective by investing primarily in other exchange-traded funds (&#8220;ETFs&#39;&#39;), common stock of issuers of any capitalization range, and American Depositary Receipts (&#8220;ADRs&#8221;) that provide investment exposure to global equity markets and that meet certain selection criteria established by Your Source Financial, PLC (the &#8220;Sub-Advisor&#8221;).</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Sub-Advisor seeks to achieve the Fund&#39;s investment objective by actively managing the Fund&#39;s portfolio with a &#8220;top-down&#8221; perspective, focusing on tactical asset allocation and proprietary security selection. 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These risks include any combination of the risks described below, as well as certain of the risks described above. 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Tracking error can arise due to factors such as the affect of transaction fees and expenses incurred by an ETF, changes in composition of an ETF&#39;s benchmark, and the ability of the ETF&#39;s manager or sponsor to successfully implement his or her investment strategy. </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">As with any fund, there is no guarantee that the Fund will achieve its investment objective.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">FUND PERFORMANCE</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">A comparison of the Fund&#39;s performance with that of a broad measure of market performance may give some indication of the risks of an investment in the Fund; however, the Fund is new and, therefore, does not have a performance history for a full calendar year. Of course, once the Fund has performance, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Updated performance information is available on the Fund&#39;s website at www.advisorshares.com.</font></p>0.01000.00000.05950.00230.0718-0.05700.0148150160429956216<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">ADVISORSHARES GLOBAL ECHO ETF (NYSE Arca Ticker: GIVE)</font></b></p><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">INVESTMENT OBJECTIVE<br /></font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The AdvisorShares Global Echo ETF (the &#8220;Fund&#8221;) seeks to achieve long-term capital appreciation with an emphasis on absolute (positive) returns and low sensitivity to traditional financial market indices, such as the S&amp;P 500 Index, over a full market cycle.</font></p><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">FUND FEES AND EXPENSES<br /></font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.</font><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></i></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">SHAREHOLDER FEES</font></b><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></i></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">(fees paid directly from your investment)</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> None</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">ANNUAL FUND OPERATING EXPENSES </font></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">(expenses that you pay each year as a percentage of the value of your investment)</font></i></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule19 ~</div><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">EXAMPLE<br /></font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">This Example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other funds. This Example does not take into account creation or redemption transaction fees, or the brokerage commissions that you pay when purchasing or selling shares of the Fund. If these fees and commissions were included, your costs would be higher. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same.</font></p><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Although your actual costs may be higher or lower, based on these assumptions your costs would be:<br /></font><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule20 ~</div><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PORTFOLIO TURNOVER<br /></font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund&#39;s performance. This rate excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund&#39;s shares. During the most recent fiscal year ended June 30, 2013, the Fund&#39;s portfolio turnover rate was 180% of the average value of its portfolio. </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PRINCIPAL INVESTMENT STRATEGIES&#160;</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund is a multi-manager, multi-strategy, broadly diversified, actively managed exchange-traded fund (&#8220;ETF&#8221;) with a focus on Sustainable Investing. Sustainable Investing generally refers to an investment methodology that takes into consideration economic, environmental, technology, and a variety of social factors when making investment decisions. Accordingly, the Fund is designed as a core allocation that proactively seeks Sustainable Investment-themed investment opportunities that may socially and environmentally benefit the earth, with a focus on water, clean energy, community development, innovation and other sustainable themes across asset classes. Sustainable Investment themes that the Fund may pursue include, but are not limited to, the following: economic themes (</font><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">e.g.</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">, corporate governance, risk and crisis management, community investment, energy efficiency, food, green building); environmental themes (</font><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">e.g.</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">, air, water, earth); technology themes (</font><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">e.g.</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">, mobility, renewable energy, technology, access); and social themes (</font><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">e.g.</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">, human health, occupational health and safety).<br /> &#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund&#39;s namesake is the Global Echo Foundation, a charitable foundation co-founded by Philippe Cousteau, Jr. The Global Echo Foundation&#39;s mission is to promote sustainable development across a number of different themes, including social, environmental, and entrepreneurship. The Fund was designed to pursue sustainable investment opportunities among the same themes thereby promoting the Global Echo Foundation&#39;s mission of increased sustainable development. To further support the Global Echo Foundation, the Fund will make regular monetary contributions to the Foundation. The Global Echo Foundation will not participate in or have any influence on the day-to-day operations of the Fund or the Advisor&#39;s and Sub-Advisors&#39; management of the Fund.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund seeks to achieve its investment objective by allocating a portion of the Fund&#39;s assets to each of the Fund&#39;s Sub-Advisors who will employ their respective investment strategies to generate absolute returns over a full market cycle. Generally, a full market cycle consists of a bull market followed by a bear market and a return to a bull market, or vice versa. Initially, an equal proportion of the Fund&#39;s assets will be allocated to each Sub-Advisor to obtain the desired exposure to the strategies described below. The allocation among Sub-Advisors will vary over time in response to a variety of factors including prevailing market conditions. The Advisor has designated First Affirmative Financial Network, LLC (&#8220;First Affirmative&#8221;) to allocate and monitor the allocation of the Fund&#39;s assets to each Sub-Advisor to ensure that the Fund&#39;s portfolio maintains the proper investment exposure to seek to achieve its investment objective. Each Sub-Advisor will seek to identify and invest either directly or indirectly through other ETFs, in securities of companies that are making a positive impact in the world and reflect Sustainable Investment themes, including corporate sustainability. The Fund&#39;s investments in companies that practice corporate sustainability provide an additional layer of diversification because such investments are designed to increase long-term shareholder value. Companies focused on corporate sustainability also can provide more attractive risk return profiles for investors, and can leverage various other Sustainable Investment themes.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund invests primarily in U.S. and foreign equity securities, including common and preferred stock, American Depository Receipts (&#8220;ADRs&#8221;), fixed income securities, including municipal bonds, and affiliated and unaffiliated ETFs. The Fund may take both long and short positions in any of these investments. A long position is the purchase of an investment with the expectation that it will rise in value. A short position is the sale of a borrowed investment with the expectation that it will decline in value. The Fund may invest up to 65% (and intends to always invest at least 15%) of its net assets in domestic and foreign fixed income securities. The Fund may invest in securities of any capitalization range and may employ one or more investment styles (from growth to value) at any time as necessary to seek to achieve the Fund&#39;s investment objective.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Each Sub-Advisor will determine whether to buy or sell an investment for the Fund&#39;s portfolio by applying one or more of the following strategies:</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Core Strategies</font></b></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-indent:-.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#9675;</font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160; </font><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Fixed Income Strategies.</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> Fixed income strategies consist of investment strategies that invest primarily in debt securities of domestic and foreign governments, agencies, and instrumentalities, municipalities, and companies of all maturities and qualities (including &#8220;junk bonds&#8221; and up to 15% of the Fund&#39;s total assets in defaulted debt securities), TIPS (Treasury Inflation Protected Securities), and ETFs that provide exposure to fixed income securities or strategies. Debt securities of foreign governments are sometimes referred to as sovereign debt obligations and may be issued or guaranteed by foreign governments or their agencies. The Fund may invest in mortgage-backed securities, collateralized mortgage obligations, asset-backed securities, and other mortgage related securities (&#8220;Mortgage Related Securities&#8221;). Fixed income strategies also may involve hedging through the use of investments in other ETFs to enhance risk-adjusted return.</font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-indent:-.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#9675;</font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160; </font><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Equity Strategies.</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> Equity strategies consist of both domestic and international/emerging markets strategies. The domestic equity strategies seek to invest in securities of companies that the Sub-Advisor believes will outperform other equities securities over the long term. The international/emerging markets equity strategies seek to invest in securities of undervalued international companies through ADRs that provide the Fund with exposure to businesses outside of the U.S. and that are attractively priced relative to their economic fundamentals. Both U.S. and international investments are selected using fundamental analysis of factors such as earnings, cash flows, and valuations based upon them, and are diversified among the economic and industry sectors in the S&amp;P 500<sup>&#174;</sup> Index, the Morgan Stanley Capital International (MSCI) All Country World Index, MSCI Europe, Australasia and Far East Index, and MSCI Emerging Markets Index.</font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Alternative Strategies</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-indent:-.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#9675;</font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160; </font><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Long/Short and Hedging Strategies. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Alternative strategies consist of strategies that combine short sales of equities (including shares of ETFs) or purchase of shares of inverse ETFs. As such, long/short strategies may utilize securities that seek to track indexes on markets, sectors, strategies and/or industries to hedge against potential adverse movements in security prices. The Fund may implement multiple variations of long/short and hedging strategies. 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They are affected by the risks associated with non-U.S. securities, such as changes in political or economic conditions of other countries and changes in the exchange rates of foreign currencies. In addition, investments in ADRs may be less liquid than the underlying securities in their primary trading market.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Credit Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund is subject to the risk that an issuer of a fixed income security, such as a municipal bond, may be unable or unwilling to make interest and principal payments when due. The Fund is also subject to the related risk that the value of a fixed income security may decline because of concerns about the issuer&#39;s creditworthiness. Credit risk is heightened to the extent the Fund invests in high yield securities or junk bonds.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Currency Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund&#39;s indirect and direct exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Early Closing Risk.</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> An unanticipated early closing of the NYSE Arca, Inc. (the &#8220;Exchange&#8221;) may result in a shareholder&#39;s inability to buy or sell shares of the Fund on that day.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Emerging Markets Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Certain of the Fund&#39;s investments will expose the Fund&#39;s portfolio to the risks of investing in emerging markets. Emerging markets, which consist of countries or markets with low to middle income economies as classified by the World Bank and other countries or markets with similar characteristics as determined by the Advisor, can be subject to greater social, economic, regulatory, and political uncertainties and can be extremely volatile.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Equity Risk.</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles which may cause stock prices to fall over short or extended periods of time.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">ETF Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Through its investments in ETFs, the Fund will be subject to the risks associated with the ETFs&#39; investments, including the possibility that the value of the securities held by an ETF could decrease.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:.5in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Fixed Income Risk.</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> Fixed income securities are subject to the risk that securities could lose value because of interest rate changes. Fixed income securities with longer maturities are subject to greater price shifts as a result of interest rate changes than fixed income securities with shorter maturities. 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These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. In addition, the securities of some foreign companies may be less liquid and, at times, more volatile than securities of comparable U.S. companies.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">High-Yield Securities Risk.</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> The risk that high-yield debt securities or &#8220;junk bonds&#8221; are subject to a greater risk of loss of income and principal than higher-grade debt securities. 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Further, there is no guarantee that the Fund will be able to achieve its objective.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Liquidity Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; Liquidity risk exists when particular Fund investments are difficult to purchase or sell. 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The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of replacement. The price at such time may be higher or lower than the price at which the security was sold by the Fund. If the underlying security goes down in price between the time the Fund sells the security and buys it back, the Fund will realize a gain on the transaction. Conversely, if the underlying security goes up in price during the period, the Fund will realize a loss on the transaction. Any such loss is increased by the amount of premium or interest the Fund must pay to the lender of the security. Likewise, any gain will be decreased by the amount of premium or interest the Fund must pay to the lender of the security. Because a short position loses value as the security&#39;s price increases, the loss on a short sale is theoretically unlimited. 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Of course, once the Fund has performance, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Updated performance information is available on the Fund&#39;s website at www.advisorshares.com.</font></p>0.01100.00000.00400.00110.01611645098771913<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">MADRONA DOMESTIC ETF (NYSE Arca Ticker: FWDD)</font></b></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">INVESTMENT OBJECTIVE</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Madrona Domestic ETF (the &#8220;Fund&#8221;) seeks to provide long-term capital appreciation above the capital appreciation of its benchmark, the S&amp;P 500 Index.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">FUND FEES AND EXPENSES</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">SHAREHOLDER FEES </font></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">(fees paid directly from your investment)</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> None </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">ANNUAL FUND OPERATING EXPENSES </font></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">(expenses that you pay each year as a percentage of the value of your investment)</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160; </font></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule22 ~</div><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">EXAMPLE</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin:0in;margin-bottom:.0001pt;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> This Example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other funds. This Example does not take into account creation or redemption transaction fees, or the brokerage commissions that you pay when purchasing or selling shares of the Fund. If these fees and commissions were included, your costs would be higher.</font></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160;</font></b></p> <p style="margin:0in;margin-bottom:.0001pt;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</font></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule23 ~</div><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PORTFOLIO TURNOVER</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect Fund performance. This rate excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund&#39;s shares. During the most recent fiscal year ended June 30, 2013, the Fund&#39;s portfolio turnover rate was 33% of the average value of its portfolio. </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PRINCIPAL INVESTMENT STRATEGIES</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;Madrona Funds, LLC (the &#8220;Sub-Advisor&#8221;) seeks to achieve the Fund&#39;s investment objective by selecting a portfolio of up to 500 of the largest U.S.-traded equity securities. 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In addition, trading in shares of the Fund may be halted because of market conditions or for reasons that, in view of the Exchange, make trading in shares inadvisable. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">As with any fund, there is no guarantee that the Fund will achieve its investment objective.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">FUND PERFORMANCE</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The bar chart and table that follow show how the Fund has performed on a calendar year basis and provide an indication of the risks of investing in the Fund. The table also shows how the Fund&#39;s performance compares to the S&amp;P 500 Index, which is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. Both the bar chart and the table assume the reinvestment of all dividends and distributions. Past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Updated performance information is available on the Fund&#39;s website at www.advisorshares.com. </font></p><div style="display:none">~ http://www.advisorshares.com/role/RRBarChart24 ~</div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund&#39;s year-to-date total return as of September 30, 2013 was 25.88%. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Best and Worst Quarter Returns (for the period reflected in the bar chart above) </font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> <div align="left"><table border="0" cellpadding="0" cellspacing="0" style="border-collapse:collapse;width:100%;"> <tr> <td nowrap="nowrap" valign="top" width="76%" style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td nowrap="nowrap" valign="top" width="12%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Return </font></b></p> </td> <td nowrap="nowrap" valign="top" width="12%" style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Quarter/Year </font></b></p> </td> </tr><tr> <td valign="top" width="76%" style="background:#CCEEFF;border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Highest Return </font></p> </td> <td valign="top" width="12%" style="background:#CCEEFF;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">14.83% </font></p> </td> <td valign="top" width="12%" style="background:#CCEEFF;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">1Q/2012 </font></p> </td> </tr><tr> <td valign="top" width="76%" style="background:white;border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Lowest Return </font></p> </td> <td valign="top" width="12%" style="background:white;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">-6.08% </font></p> </td> <td valign="top" width="12%" style="background:white;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">2Q/2012</font></p> </td> </tr> </table></div><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDING DECEMBER&#160;31, 2012 </font></b></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule25 ~</div>0.00800.00000.00810.0161-0.00360.012512847484318830.1828Return Before Taxes Based on NAVReturn After Taxes on DistributionsReturn After Taxes on Distributions and Sale of Fund SharesS&P 500 Index (Reflects no deduction for fees, expenses, or taxes)0.18280.18190.11990.160.07270.07190.06190.09852011-06-202011-06-202011-06-202011-06-20<p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">MADRONA INTERNATIONAL ETF (NYSE Arca Ticker: FWDI)</font></b></p><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">INVESTMENT OBJECTIVE</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin:0in;margin-bottom:.0001pt;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The Madrona International ETF (the &#8220;Fund&#8221;) seeks to provide long-term capital appreciation above the capital appreciation of its international benchmarks, such as the MSCI EAFE Index, the Fund&#39;s primary benchmark, and the BNY Mellon Classic ADR Index, the Fund&#39;s secondary benchmark.</font></p><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">FUND FEES AND EXPENSES</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Most investors will incur customary brokerage commissions when buying or selling shares of the Fund which are not reflected in the table below.</font></p><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">SHAREHOLDER FEES </font></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">(fees paid directly from your investment)</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> None </font></p><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">ANNUAL FUND OPERATING EXPENSES </font></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">(expenses that you pay each year as a percentage of the value of your investment)</font></i></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule27 ~</div><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">EXAMPLE</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin:0in;margin-bottom:.0001pt;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> This Example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other funds. This Example does not take into account creation or redemption transaction fees, or the brokerage commissions that you pay when purchasing or selling shares of the Fund. If these fees and commissions were included, your costs would be higher. </font></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160;</font></b></p> <p style="margin:0in;margin-bottom:.0001pt;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: </font></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule28 ~</div><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">PORTFOLIO TURNOVER</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect Fund performance. This rate excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund&#39;s shares. 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In addition, trading in shares of the Fund may be halted because of market conditions or for reasons that, in view of the Exchange, make trading in shares inadvisable. </font></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160;</font></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">As with any fund, there is no guarantee that the Fund will achieve its investment objective.</font></p><p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">FUND PERFORMANCE</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The bar chart and table that follow show how the Fund has performed on a calendar year basis and provide an indication of the risks of investing in the Fund. The table also shows how the Fund&#39;s performance compares to the MSCI EAFE Index, which is a unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the United States and Canada. Both the bar chart and the table assume the reinvestment of all dividends and distributions. Past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. </font></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160;</font></p> <p style="margin:0in;margin-bottom:.0001pt;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Updated performance information is available on the Fund&#39;s website at www.advisorshares.com. </font></p><div style="display:none">~ http://www.advisorshares.com/role/RRBarChart29 ~</div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The Fund&#39;s year-to-date total return as of September 30, 2013 was 12.78%. </font></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160;</font></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Best and Worst Quarter Returns (for the period reflected in the bar chart above) </font></b></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160;</font></p> <div align="left"><table border="0" cellpadding="0" cellspacing="0" style="border-collapse:collapse;width:100%;"> <tr> <td nowrap="nowrap" valign="top" width="76%" style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160; </font></p> </td> <td nowrap="nowrap" valign="top" width="12%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Return </font></b></p> </td> <td nowrap="nowrap" valign="top" width="12%" style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Quarter/Year </font></b></p> </td> </tr> <tr> <td valign="top" width="76%" style="background:#CCEEFF;border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Highest Return </font></p> </td> <td valign="top" width="12%" style="background:#CCEEFF;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">14.39% </font></p> </td> <td valign="top" width="12%" style="background:#CCEEFF;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">1Q/2012 </font></p> </td> </tr> <tr> <td valign="top" width="76%" style="background:white;border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Lowest Return </font></p> </td> <td valign="top" width="12%" style="background:white;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-9.26% </font></p> </td> <td valign="top" width="12%" style="background:white;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">2Q/2012 </font></p> </td> </tr> </table></div><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDING DECEMBER&#160;31, 2012 </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160; </font></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule30 ~</div>0.00800.00000.00850.0165-0.00400.012512848286119240.1987Return Before Taxes Based on NAVReturn After Taxes on DistributionsReturn After Taxes on Distributions and Sale of Fund SharesMSCI EAFE Index (Reflects no deduction for fees, expenses, or taxes)0.19870.19590.13150.1732-0.0145-0.0166-0.01280.01542011-06-202011-06-202011-06-202011-06-20<p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">MADRONA GLOBAL BOND ETF (NYSE Arca Ticker: FWDB)</font></b></p><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">INVESTMENT OBJECTIVE</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160;</font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The Madrona Global Bond ETF (the &#8220;Fund&#8221;) seeks investment results that exceed the price and yield performance of its benchmark, the Barclays Capital Aggregate Bond Index.</font></p><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">FUND FEES AND EXPENSES</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin:0in;margin-bottom:.0001pt;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Most investors will incur customary brokerage commissions when buying or selling shares of the Fund which are not reflected in the table below.</font></p><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">SHAREHOLDER FEES </font></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">(fees paid directly from your investment)</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> None </font></p><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">ANNUAL FUND OPERATING EXPENSES </font></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">(expenses that you pay each year as a percentage of the value of your investment)</font></i></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule32 ~</div><p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">EXAMPLE</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160;</font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> This Example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other funds. This Example does not take into account creation or redemption transaction fees, or the brokerage commissions that you pay when purchasing or selling shares of the Fund. If these fees and commissions were included, your costs would be higher. </font></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160; </font></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: </font></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule33 ~</div><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">PORTFOLIO TURNOVER</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160;</font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect Fund performance. This rate excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund&#39;s shares. 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An ETP may derive dividend and interest income from certain of its investments. This income can vary widely over the short- and long-term. If prevailing market interest rates drop, distribution rates of an ETP&#39;s income producing investments may decline which then may adversely affect the Fund&#39;s value. </font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160; </font></p> <p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Interest Rate Risk </font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">. An ETP&#39;s investments in or exposure to fixed income securities are subject to the risk that interest rates rise and fall over time. 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An investment in an ETP is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund may experience losses with respect to its investment in an ETP. Further, there is no guarantee that an ETP will be able to achieve its objective. </font></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160;</font></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">As with any fund, there is no guarantee that the Fund will achieve its investment objective.</font></p><p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">FUND PERFORMANCE</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160; </font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The bar chart and table that follow show how the Fund has performed on a calendar year basis and provide an indication of the risks of investing in the Fund. The table also shows how the Fund&#39;s performance compares to the Barclays Capital U.S. Aggregate Bond Index measures the performance of the U.S. investment-grade bond market. Both the bar chart and the table assume the reinvestment of all dividends and distributions. Past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. </font></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160; </font></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Updated performance information is available on the Fund&#39;s website at www.advisorshares.com. </font></p><div style="display:none">~ http://www.advisorshares.com/role/RRBarChart34 ~</div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The Fund&#39;s year-to-date total return as of September 30, 2013 was -2.84%. </font></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160;</font></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Best and Worst Quarter Returns (for the period reflected in the bar chart above) </font></b></p> <p style="margin:0in;margin-bottom:.0001pt;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160; </font></p> <div align="left"><table border="0" cellpadding="0" cellspacing="0" style="border-collapse:collapse;width:100%;"> <tr> <td nowrap="nowrap" valign="top" width="76%" style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160; </font></p> </td> <td nowrap="nowrap" valign="top" width="12%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Return </font></b></p> </td> <td nowrap="nowrap" valign="top" width="12%" style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Quarter/Year </font></b></p> </td> </tr> <tr> <td valign="top" width="76%" style="background:#CCEEFF;border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Highest Return </font></p> </td> <td valign="top" width="12%" style="background:#CCEEFF;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">3.18% </font></p> </td> <td valign="top" width="12%" style="background:#CCEEFF;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">3Q/2012 </font></p> </td> </tr> <tr> <td valign="top" width="76%" style="background:white;border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Lowest Return </font></p> </td> <td valign="top" width="12%" style="background:white;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">1.02% </font></p> </td> <td valign="top" width="12%" style="background:white;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">2Q/2012 </font></p> </td> </tr> </table></div><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDING DECEMBER&#160;31, 2012</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160; </font></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule35 ~</div>0.00500.00000.00520.00380.0140-0.00070.013313643776116780.0784Return Before Taxes Based on NAVReturn After Taxes on DistributionsReturn After Taxes on Distributions and Sale of Fund SharesBarclays Capital U.S. Aggregate Bond Index (Reflects no deduction for fees, expenses or taxes)0.07840.06930.05130.04210.06630.05680.0510.05682011-06-202011-06-202011-06-202011-06-20<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">MEIDELL TACTICAL ADVANTAGE ETF (NYSE Arca Ticker: MATH)</font></b></p><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">INVESTMENT OBJECTIVE</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The Meidell Tactical Advantage ETF (the &#8220;Fund&#8221;) seeks to provide long-term capital appreciation with a secondary emphasis on capital preservation.</font></p><p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">FUND FEES AND EXPENSES</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.</font></p><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">SHAREHOLDER FEES </font></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">(fees paid directly from your investment)</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> None </font></p><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">ANNUAL FUND OPERATING EXPENSES </font></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">(expenses that you pay each year as a percentage of the value of your investment)</font></i></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule37 ~</div><p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">EXAMPLE</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin:0in;margin-bottom:.0001pt;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> This Example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other funds. This Example does not take into account creation or redemption transaction fees, or the brokerage commissions that you pay when purchasing or selling shares of the Fund. If these fees and commissions were included, your costs would be higher.</font></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160;</font></b></p> <p style="margin:0in;margin-bottom:.0001pt;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</font></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule38 ~</div><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> PORTFOLIO TURNOVER</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div align="left"><table border="0" cellpadding="0" cellspacing="0" style="border-collapse:collapse;width:100%;"> <tr> <td valign="top" width="100%" style="padding:0in 0in 0in 0in;"></td> </tr></table></div><p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). 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Certain of the Fund&#39;s investments may generate income that is not qualifying income. 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An ETP&#39;s investments in securities of foreign issuers involve certain risks including, but not limited to, risks of adverse changes in foreign economic, political, regulatory and other conditions, or changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges). In certain countries, legal remedies available to investors may be more limited than those available with respect to investments in the United States. 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Because it may invest indirectly in value stocks, the Fund could suffer losses or produce poor results relative to other funds, even in a rising market, if the Underlying ETF&#39;s investment advisor or Underlying ETP&#39;s issuers assessment of a company&#39;s value or prospects for exceeding earnings expectations or market conditions is wrong. </font></p> <p style="margin:0in;margin-bottom:.0001pt;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:9.0pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">As with any fund, there is no guarantee that the Fund will achieve its investment objective.</font></p><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">FUND PERFORMANCE</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The bar chart and table that follow show how the Fund has performed on a calendar year basis and provides an indication of the risks of investing in the Fund. The table also shows how the Fund&#39;s performance compares to the S&amp;P 500 Index, which is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. Both the bar chart and the table assume the reinvestment of all dividends and distributions. Past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. </font></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">&#160; </font></p> <p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Updated performance information is available on the Fund&#39;s website at www.advisorshares.com.</font></p><div style="display:none">~ http://www.advisorshares.com/role/RRBarChart39 ~</div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund&#39;s year-to-date total return as of September 30, 2013 was 9.87%. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Best and Worst Quarter Returns (for the period reflected in the bar chart above) </font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> <div align="left"><table border="0" cellpadding="0" cellspacing="0" style="border-collapse:collapse;width:100%;"> <tr> <td nowrap="nowrap" valign="top" width="76%" style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td nowrap="nowrap" valign="top" width="12%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Return </font></b></p> </td> <td nowrap="nowrap" valign="top" width="12%" style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Quarter/Year </font></b></p> </td> </tr><tr> <td valign="top" width="76%" style="background:#CCEEFF;border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Highest Return </font></p> </td> <td valign="top" width="12%" style="background:#CCEEFF;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">9.41% </font></p> </td> <td valign="top" width="12%" style="background:#CCEEFF;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">1Q/2012 </font></p> </td> </tr><tr> <td valign="top" width="76%" style="background:white;border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Lowest Return </font></p> </td> <td valign="top" width="12%" style="background:white;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">-6.44% </font></p> </td> <td valign="top" width="12%" style="background:white;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">2Q/2012</font></p> </td> </tr> </table></div><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDING DECEMBER&#160;31, 2012</font></b></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule40 ~</div>0.01200.00000.01790.00280.0327-0.01640.0163166853156534550.063Return Before Taxes Based on NAVReturn After Taxes on DistributionsReturn After Taxes on Distributions and Sale of Fund SharesS&P 500 Index (Reflects no deduction for fees, expenses, or taxes)0.0630.06160.04280.160.02880.02770.02430.09392011-06-222011-06-222011-06-222011-06-22<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">NEWFLEET MULTI-SECTOR INCOME ETF (NYSE Arca Ticker: MINC)</font></b></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">INVESTMENT OBJECTIVE</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Newfleet Multi-Sector Income ETF (the &#8220;Fund&#8221;) seeks to provide current income 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This Example does not take into account creation or redemption transaction fees, or the brokerage commissions that you pay when purchasing or selling shares of the Fund. If these fees and commissions were included, your costs would be higher. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</font></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule43 ~</div><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PORTFOLIO TURNOVER</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund&#39;s performance. This rate excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund&#39;s shares. For the period from March 19, 2013, the Fund&#39;s commencement of operations, through the most recent fiscal year ended June 30, 2013, the Fund&#39;s portfolio turnover rate was 105% of the average value of its portfolio. </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PRINCIPAL INVESTMENT STRATEGIES</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">In seeking to achieve the Fund&#39;s investment objective, Newfleet Asset Management, LLC (the &#8220;Sub-Advisor&#8221;) applies a time-tested approach and extensive credit research to capitalize on opportunities across undervalued areas of the bond markets. The Fund principally invests in investment-grade securities, which are securities with credit ratings within the four highest rating categories of a nationally recognized statistical rating organization or, if unrated, those securities that the Sub-Advisor determines to be of comparable quality. The Sub-Advisor seeks to provide diversification by allocating the Fund&#39;s investments among various sectors of the fixed income markets, which, as of the date of this Prospectus, include: corporate investment-grade, corporate high-yield, bank loans, non-agency commercial mortgage-backed securities (&#8220;CMBSs&#8221;), agency and non-agency residential mortgage-backed securities (&#8220;RMBSs&#8221;), non-U.S. dollar securities, emerging market high-yield securities, Yankee investment-grade bonds, asset-backed securities, taxable municipal bonds, tax-exempt municipal bonds, and securities issued or guaranteed as to principal and interest by the U.S. government, its agencies, authorities or instrumentalities. 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The Fund may invest up to 20% of its total assets in securities that are rated below investment-grade at the time of purchase. If certain of the Fund&#39;s holdings experience a decline in their credit quality and fall below investment-grade, the Fund may continue to hold the securities and they will not count toward the Fund&#39;s 20% investment limit. 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Fixed income securities with longer maturities are subject to greater price shifts as a result of interest rate changes than fixed income securities with shorter maturities. Fixed income securities also are subject to prepayment, interest rate, and credit risks.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Foreign Investment Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund&#39;s investments in securities of foreign issuers may involve certain risks that are greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. In addition, the securities of some foreign companies may be less liquid and, at times, more volatile than securities of comparable U.S. companies.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">High-Yield Securities Risk.</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> The Fund&#39;s investments in high-yield securities or &#8220;junk bonds&#8221; are subject to a greater risk of loss of income and principal than higher grade debt securities. 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Of course, once the Fund has performance, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Updated performance information is available on the Fund&#39;s website at www.advisorshares.com.</font></p>0.00650.00000.00480.0113-0.00380.0075773225871344<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PERITUS HIGH YIELD ETF (NYSE Arca Ticker: HYLD)</font></b></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">INVESTMENT OBJECTIVE</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Peritus High Yield ETF (the &#8220;Fund&#8221;) seeks high current income with a secondary goal of capital appreciation.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">FUND FEES AND EXPENSES&#160;</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">SHAREHOLDER FEES </font></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">(fees paid directly from your investment)</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> None </font></p><p style="margin-bottom:.0001pt;margin-left:9.0pt;margin-right:0in;margin-top:0in;text-indent:-9.0pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">ANNUAL FUND OPERATING EXPENSES </font></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">(expenses that you pay each year as a percentage of the value of your investment)</font></i></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule45 ~</div><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">EXAMPLE</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">This Example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other funds. 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A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund&#39;s performance. This rate excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund&#39;s shares. 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The Sub-Advisor takes a deep value contrarian approach to the credit markets, foregoing relative value and new issue participation in favor of absolute returns. The Sub-Advisor focuses on the secondary market, predominantly investing in assets at a discount to par ($100), allowing for a potential opportunity to generate capital gains in addition to current yield. The Sub-Advisor believes that structural and technical inefficiencies exist in the secondary credit markets, which create tremendous investment opportunities, and that, by holding a diversified but limited number of securities, the portfolio will be constructed of securities that provide exposure to industries believed to offer the most value to the Fund. </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PRINCIPAL RISKS OF INVESTING IN THE FUND&#160;</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund is subject to a number of risks that may affect the value of its shares, including:</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Credit Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund is subject to the risk that an issuer of a fixed income security, such as a corporate bond, may be unable or unwilling to make interest and principal payments when due. 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These securities are considered predominately speculative with respect to the issuer&#39;s continuing ability to make principal and interest payments.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Issuer Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The value of a security may increase for a number of reasons which directly relate to the issuer, such as management performance, improved financial condition and increased demand of the issuer&#39;s goods or services. 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This can reduce the Fund&#39;s returns because the Fund may be unable to transact at advantageous times or prices. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Loan Participation Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund may not have a readily available market for loan participation interests and, in some cases, the Fund may have to dispose of such securities at a substantial discount from face value. 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The Sub-Advisor&#39;s judgments about the markets, the economy, or companies may not anticipate actual market movements, economic conditions or company performance, and these judgments may affect the return on your investment.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Market Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Due to market conditions, the value of the Fund&#39;s investments may fluctuate significantly from day to day. 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In addition, trading in shares of the Fund may be halted because of market conditions or for reasons that, in view of the Exchange, make trading in shares inadvisable. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">As with any fund, there is no guarantee that the Fund will achieve its investment objective.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">FUND PERFORMANCE</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The bar chart and table that follow show how the Fund has performed on a calendar year basis and provide an indication of the risks of investing in the Fund. The table also shows how the Fund&#39;s performance compares to the Barclays U.S. Corporate High Yield Index, which is an unmanaged index considered representative of the universe of U.S. fixed rate, non-investment-grade debt. Both the bar chart and the table assume the reinvestment of all dividends and distributions. Past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Updated performance information is available on the Fund&#39;s website at www.advisorshares.com.</font></p><div style="display:none">~ http://www.advisorshares.com/role/RRBarChart47 ~</div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund&#39;s year-to-date total return as of September 30, 2013 was 9.03%. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Best and Worst Quarter Returns (for the period reflected in the bar chart above)</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0pt;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> <div align="left"><table border="0" cellpadding="0" cellspacing="0" style="border-collapse:collapse;width:100%;"> <tr> <td nowrap="nowrap" valign="top" width="74%" style="border-bottom:solid black 1.0pt;border-left:solid black 1.0pt;border-top:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td nowrap="nowrap" valign="top" width="1%" style="border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td nowrap="nowrap" valign="top" width="12%" style="border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Return </font></b></p> </td> <td nowrap="nowrap" valign="top" width="1%" style="border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td nowrap="nowrap" valign="top" width="12%" style="border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;border-top:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Quarter/Year </font></b></p> </td> </tr> <tr> <td width="74%" style="background:#CCECFF;border-bottom:solid black 1.0pt;border-left:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Highest Return </font></p> </td> <td width="1%" style="background:#CCECFF;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td width="12%" style="background:#CCECFF;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">6.89% </font></p> </td> <td width="1%" style="background:#CCECFF;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td width="12%" style="background:#CCECFF;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">1Q/2012 </font></p> </td> </tr> <tr> <td valign="top" width="74%" style="border-bottom:solid black 1.0pt;border-left:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Lowest Return </font></p> </td> <td valign="top" width="1%" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td valign="top" width="12%" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">-7.05% </font></p> </td> <td valign="top" width="1%" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td valign="top" width="12%" style="border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">3Q/2011 </font></p> </td> </tr> </table></div><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDING DECEMBER&#160;31, 2012 </font></b></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule48 ~</div>0.01100.00000.00130.0123-0.00020.012512839468014960.01920.1511Return Before Taxes Based on NAVReturn After Taxes on DistributionsReturn After Taxes on Distributions and Sale of Fund SharesBarclays U.S. Corporate High Yield Index (Reflects no deduction for fees, expenses, or taxes)0.15110.11750.09710.15810.08610.05490.05490.10782010-11-302010-11-302010-11-302010-11-30<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;text-transform:uppercase;">Pring Turner Business Cycle ETF</font></b><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> (NYSE Arca Ticker: DBIZ)</font></b></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">INVESTMENT OBJECTIVE&#160;</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Pring Turner Business Cycle ETF (the &#8220;Fund&#8221;) seeks long-term total return from capital appreciation and income.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">FUND FEES AND EXPENSES</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. 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This Example does not take into account creation or redemption transaction fees, or the brokerage commissions that you pay when purchasing or selling shares of the Fund. 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Although your actual costs may be higher or lower, based on these assumptions your costs would be:</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"></font></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule51 ~</div><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PORTFOLIO TURNOVER</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund&#39;s performance. This rate excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund&#39;s shares. For the period from December 18, 2012, the Fund&#39;s commencement of operations, through the most recent fiscal year ended June 30, 2013, the Fund&#39;s portfolio turnover rate was 26% of the average value of its portfolio.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PRINCIPAL INVESTMENT STRATEGIES</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The overriding investment goal of the Fund is to protect the value of the Fund&#39;s portfolio during unfavorable market conditions and to grow the value of the Fund&#39;s portfolio in favorable market conditions. Utilizing its proprietary business cycle research, Pring Turner Capital Group (the &#8220;Sub-Advisor&#8221;) proactively changes the Fund&#39;s asset allocation and sector emphasis in seeking to minimize the Fund&#39;s portfolio risk and to optimize portfolio returns throughout the business cycle. The Sub-Advisor will invest the Fund&#39;s portfolio in securities that provide diversified exposure to the three primary asset classes (</font><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">i.e.</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">, stocks, bonds and commodities) across a wide range of economic sectors.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">In seeking its objective, the Fund may invest in U.S. and foreign equity securities, including common and preferred stock, American Depositary Receipts (&#8220;ADRs&#8221;), high quality corporate debt securities (rated BBB or higher), affiliated and unaffiliated exchange-traded funds (&#8220;ETFs&#8221;), exchange-traded notes (&#8220;ETNs&#8221;), and cash and cash equivalents. 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They are affected by the risks associated with non-U.S. securities, such as changes in political or economic conditions of other countries and changes in the exchange rates of foreign currencies. 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In addition, certain of the ETPs may hold common portfolio positions, thereby reducing any diversification benefits. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Exchange-Traded Note (ETN) Risk.</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> ETNs are senior, unsecured unsubordinated debt securities issued by an underwriting bank that are designed to provide returns that are linked to a particular benchmark less investor fees. ETNs have a maturity date and generally, are backed only by the creditworthiness of the issuer. As a result, the value of an ETN may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in the underlying market (</font><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">e.g</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">., the commodities market), changes in the applicable interest rates, and changes in the issuer&#39;s credit rating and economic, legal, political or geographic events that affect the referenced market. 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Of course, once the Fund has performance, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Updated performance information is available on the Fund&#39;s website at www.advisorshares.com. </font></p>0.01000.00000.03700.00120.0482-0.03210.0161164116221644685<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">QAM EQUITY HEDGE ETF (NYSE Arca Ticker: QEH)</font></b></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">INVESTMENT OBJECTIVE</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The QAM Equity Hedge ETF (the &#8220;Fund&#8221;) seeks investment results that exceed the risk adjusted performance of approximately 50% of the long/short equity hedge fund universe as defined by the HFRI Equity Hedge (Total) Index constituents.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">FUND FEES AND EXPENSES</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">SHAREHOLDER FEES </font></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">(fees paid directly from your investment)</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> None</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">ANNUAL FUND OPERATING EXPENSES </font></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">(expenses that you pay each year as a percentage of the value of your investment)</font></i></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule53 ~</div><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">EXAMPLE</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">This Example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other funds. This Example does not take into account creation or redemption transaction fees, or the brokerage commissions that you pay when purchasing or selling shares of the Fund. If these fees and commissions were included, your costs would be higher. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</font></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule54 ~</div><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PORTFOLIO TURNOVER</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund&#39;s performance. This rate excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund&#39;s capital shares. For the period from August 7, 2012, the Fund&#39;s commencement of operations, through the most recent fiscal year ended June 30, 2013, the Fund&#39;s portfolio turnover rate was 114% of the average value of its portfolio.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PRINCIPAL INVESTMENT STRATEGIES</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund is a &#8216;&#8216;fund of funds&#39;&#39; that seeks to achieve its investment objective by investing primarily in both long and short positions in other exchange-traded funds (&#8220;ETFs&#39;&#39;) and exchange-traded notes (&#8220;ETNs&#8221;) that offer diversified exposure to global regions, countries, investment styles (</font><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">i.e.</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">, value, growth), sectors and industries. 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This can reduce the Fund&#39;s returns because the Fund may be unable to transact at advantageous times or prices. </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Market Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Due to market conditions, the value of the Fund&#39;s investments may fluctuate significantly from day to day. This volatility may cause the value of your investment in the Fund to decrease.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Portfolio Turnover Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund may experience relatively high portfolio turnover, which may result in increased transaction costs and lower Fund performance. </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Premium-Discount Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund&#39;s shares may trade above or below their net asset value (&#8220;NAV&#8221;). The trading price of the Fund&#39;s shares may deviate significantly from their NAV during periods of market volatility. </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Short Sales Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Short sales are transactions in which the Fund sells a security it does not own. To complete the transaction, the Fund must borrow the security to make delivery to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of replacement. The price at such time may be higher or lower than the price at which the security was sold by the Fund. If the underlying security goes down in price between the time the Fund sells the security and buys it back, the Fund will realize a gain on the transaction. Conversely, if the underlying security goes up in price during the period, the Fund will realize a loss on the transaction. Any such loss is increased by the amount of premium or interest the Fund must pay to the lender of the security. Likewise, any gain will be decreased by the amount of premium or interest the Fund must pay to the lender of the security. Because a short position loses value as the security&#39;s price increases, the loss on a short sale is theoretically unlimited. Short sales involve leverage because the Fund borrows securities and then sells them, effectively leveraging its assets. The use of leverage may magnify gains or losses for the Fund.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Tax Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">In order to qualify for the favorable U.S. federal income tax treatment accorded to regulated investment companies (&#8220;RICs&#8221;), the Fund must derive at least 90% of its gross income in each taxable year from certain categories of income (&#8220;qualifying income&#8221;). Certain of the Fund&#39;s investments may generate income that is not qualifying income. If the Fund were to fail to meet the qualifying income test and fail to qualify as a RIC, it would be taxed in the same manner as an ordinary corporation, and distributions to its shareholders would not be deductible by the Fund in computing its taxable income. </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Trading Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Although the Fund&#39;s shares are currently listed on the Exchange, there can be no assurance that an active trading market for shares will develop or be maintained. In addition, trading in shares of the Fund may be halted because of market conditions or for reasons that, in view of the Exchange, make trading in shares inadvisable. </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">ETP Investment Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Through its investments in ETPs, the Fund will be subject to the risks associated with such investment vehicles&#39; investments, or reference assets in the case of ETNs, including the possibility that the value of the securities or instruments held or tracked by an ETP could decrease. These risks include any combination of the risks described below, as well as certain of the risks described above. The Fund&#39;s exposure to a particular risk will be proportionate to the Fund&#39;s overall allocation to the ETPs and their exposure to various security types, currencies, market sectors, and geographic regions. </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-indent:-.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-US" style="font-family:Symbol;font-size:10.0pt;line-height:normal;">&#183;</font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160; </font><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Commodity Risk.</font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> Because certain ETPs may have a significant portion of their assets exposed directly or indirectly to commodities or commodity-linked securities, developments affecting commodities may have a disproportionate impact on such ETPs. An ETP&#39;s investment in commodities or commodity-linked derivative instruments may subject the ETP (and indirectly the Fund) to greater volatility than investments in traditional securities, particularly if the instruments involve leverage. The value of commodities and commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.</font></p><p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></p><p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-indent:-.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-US" style="font-family:Symbol;font-size:10.0pt;line-height:normal;">&#183;</font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160; </font><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Concentration Risk</font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">. An ETP may, at various times, concentrate in the securities or commodities of a particular industry, group of industries, market sector or geographic region. 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Commodity-linked derivatives, repurchase agreements, swap agreements and other forms of financial instruments that involve counterparties subject an ETP to the risk that the counterparty could default on its obligations under the agreement, either through the counterparty&#39;s bankruptcy or failure to perform its obligations.</font></p><p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></p><p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-indent:-.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-US" style="font-family:Symbol;font-size:10.0pt;line-height:normal;">&#183;</font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160; </font><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Credit Risk</font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">. Certain ETPs are subject to the risk that a decline in the credit quality of a portfolio investment or a counterparty to a portfolio investment could cause the ETP&#39;s share price to fall. The ETPs could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations.</font></p><p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-US" style="font-family:Symbol;font-size:10.0pt;line-height:normal;">&#183;</font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160; </font><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Emerging Markets Risk.</font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> There is an increased risk of price volatility associated with an ETP&#39;s investments in, or exposure to, emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar.</font></p><p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font lang="EN-US" style="font-family:Symbol;font-size:10.0pt;line-height:normal;">&#183;</font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160; </font><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Equity Risk</font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">. The prices of equity securities in which an ETP invests or is exposed to rise and fall daily. 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An ETP&#39;s investments in, or exposure to, foreign issuers involve certain risks including, but not limited to, risks of adverse changes in foreign economic, political, regulatory and other conditions, or changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges). In certain countries, legal remedies available to investors may be more limited than those available with respect to investments in the United States. 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The Fund may experience losses with respect to its investment in an ETP. 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An ETP may invest in large-capitalization companies. 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An ETP may invest in mid-capitalization companies. Mid-cap companies may be more volatile and more likely than large-cap companies to have limited product lines, markets or financial resources, or depend on a few key employees. 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Of course, once the Fund has performance, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Updated performance information is available on the Fund&#39;s website at www.advisorshares.com.</font></p>0.01000.00000.03610.00070.03540.00080.0469-0.03040.0165168114121204594<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">RANGER EQUITY BEAR ETF (NYSE Arca Ticker: HDGE)</font></b></p><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">INVESTMENT OBJECTIVE<br /></font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Ranger Equity Bear ETF (the &#8220;Fund&#8221;) seeks capital appreciation through short sales of domestically traded equity securities.</font></p><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">FUND FEES AND EXPENSES<br /></font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">SHAREHOLDER FEES </font></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">(fees paid directly from your investment)</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> None</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">ANNUAL FUND OPERATING EXPENSES </font></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">(expenses that you pay each year as a percentage of the value of your investment)</font></i></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule56 ~</div><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">EXAMPLE</font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">This Example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other funds. This Example does not take into account creation or redemption transaction fees, or the brokerage commissions that you pay when purchasing or selling shares of the Fund. If these fees and commissions were included, your costs would be higher. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Examplei also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</font></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule57 ~</div><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PORTFOLIO TURNOVER</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund&#39;s performance. This rate excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund&#39;s shares. 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(the &#8220;Sub-Advisor&#8221;) seeks to achieve the Fund&#39;s investment objective by short selling a portfolio of liquid mid- and large-cap U.S. exchange-traded equity securities, exchange-traded funds (&#8220;ETFs&#8221;) registered pursuant to the 1940 Act, exchange-traded notes (&#8220;ETNs&#8221;) and other exchange-traded products (collectively, &#8220;ETPs&#8221;). The Sub-Advisor implements a bottom-up, fundamental, research driven security selection process that seeks to identify securities with low earnings quality or aggressive accounting that may tend to mask operational deterioration and bolster the reported earnings per share over a short time period. In addition to these issues, the Sub-Advisor seeks to identify earnings driven events that may act as a catalyst to the price decline of a security, such as downwards earnings revisions or reduced forward earnings outlook. On a day-to-day basis, the Fund may hold U.S. government securities, short-term high quality fixed income securities, money market instruments, overnight and fixed-term repurchase agreements, cash and cash equivalents with maturities of one year or less for investment purposes and to cover its short positions. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">In addition to extensive quantitative analysis, careful consideration is given to qualitative analysis. The assessment of the management team, accounting practices, corporate governance and the company&#39;s competitive advantage are all key items. 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Through its positions in ETPs, the Fund will be subject to the risks associated with such vehicles, investments, or reference assets in the case of ETNs, including the possibility that the value of the securities or instruments held by an ETP or an ETN&#39;s reference asset could decrease (or increase in the case of short positions). An ETP&#39;s lack of liquidity can result in its value being more volatile than the underlying portfolio investment. 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The trading price of the Fund&#39;s shares may deviate significantly from their NAV during periods of market volatility. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Short Sales Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Short sales are transactions in which the Fund sells a security it does not own. To complete the transaction, the Fund must borrow the security to make delivery to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of replacement. The price at such time may be higher or lower than the price at which the security was sold by the Fund. If the underlying security goes down in price between the time the Fund sells the security and buys it back, the Fund will realize a gain on the transaction. Conversely, if the underlying security goes up in price during the period, the Fund will realize a loss on the transaction. Any such loss is increased by the amount of premium or interest the Fund must pay to the lender of the security. Likewise, any gain will be decreased by the amount of premium or interest the Fund must pay to the lender of the security. Because a short position loses value as the security&#39;s price increases, the loss on a short sale is theoretically unlimited. Short sales involve leverage because the Fund borrows securities and then sells them, effectively leveraging its assets. The use of leverage may magnify gains or losses for the Fund.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Trading Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Although the Fund&#39;s shares are currently listed on the Exchange, there can be no assurance that an active trading market for shares will develop or be maintained. In addition, trading in shares of the Fund may be halted because of market conditions or for reasons that, in view of the Exchange, make trading in shares inadvisable. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">As with any fund, there is no guarantee that the Fund will achieve its investment objective.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">FUND PERFORMANCE</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The bar chart and table that follow show how the Fund has performed on a calendar year basis and provide an indication of the risks of investing in the Fund. The table also shows how the Fund&#39;s performance compares to the S&amp;P 500 Index, which is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. Both the bar chart and the table assume the reinvestment of all dividends and distributions. Past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Updated performance information is available on the Fund&#39;s website at www.advisorshares.com.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">RETURN</font></b></p><div style="display:none">~ http://www.advisorshares.com/role/RRBarChart58 ~</div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund&#39;s year-to-date total return as of September 30, 2013 was -21.62%. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;&#160; </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Best and Worst Quarter Returns (for the period reflected in the bar chart above) </font></b></p> <div align="left"><table border="0" cellpadding="0" cellspacing="0" style="width:100%;"> <tr> <td valign="bottom" width="74%" style="border-bottom:solid black 1.5pt;border-left:solid black 1.0pt;border-top:solid black 1.0pt;padding:0in 0in 0in 9.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td valign="bottom" width="1%" style="border-bottom:solid black 1.5pt;border-top:solid black 1.0pt;padding:0in 0in 0in 9.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td valign="bottom" width="12%" style="border-bottom:solid black 1.5pt;border-top:solid black 1.0pt;padding:0in 0in 0in 9.0pt;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Return </font></b></p> </td> <td valign="bottom" width="1%" style="border-bottom:solid black 1.5pt;border-top:solid black 1.0pt;padding:0in 0in 0in 9.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td valign="bottom" width="12%" style="border-bottom:solid black 1.5pt;border-right:solid black 1.0pt;border-top:solid black 1.0pt;padding:0in 0in 0in 9.0pt;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Quarter/Year </font></b></p> </td> </tr> <tr> <td valign="bottom" width="74%" style="background:#CCECFF;border-bottom:solid black 1.5pt;border-left:solid black 1.0pt;border-top:solid black 1.5pt;padding:0in 0in 0in 9.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Highest Return </font></p> </td> <td valign="bottom" width="1%" style="background:#CCECFF;border-bottom:solid black 1.5pt;border-top:solid black 1.5pt;padding:0in 0in 0in 9.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td valign="bottom" width="12%" style="background:#CCECFF;border-bottom:solid black 1.5pt;border-top:solid black 1.5pt;padding:0in 0in 0in 9.0pt;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">13.20% </font></p> </td> <td valign="bottom" width="1%" style="background:#CCECFF;border-bottom:solid black 1.5pt;border-top:solid black 1.5pt;padding:0in 0in 0in 2.95pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:6.05pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td valign="bottom" width="12%" style="background:#CCECFF;border-bottom:solid black 1.5pt;border-right:solid black 1.0pt;border-top:solid black 1.5pt;padding:0in 0in 0in 9.0pt;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">2Q/2012 </font></p> </td> </tr> <tr> <td valign="bottom" width="74%" style="border-bottom:solid black 1.5pt;border-left:solid black 1.0pt;padding:0in 0in 0in 9.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Lowest Return </font></p> </td> <td valign="bottom" width="1%" style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 9.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td valign="bottom" width="12%" style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 9.0pt;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">-17.56% </font></p> </td> <td valign="bottom" width="1%" style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 9.0pt;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td valign="bottom" width="12%" style="border-bottom:solid black 1.5pt;border-right:solid black 1.0pt;padding:0in 0in 0in 9.0pt;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">1Q/2012 </font></p> </td> </tr> </table></div> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="display:none;font-family:Times New Roman,serif;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDING DECEMBER&#160;31, 2012 </font></b></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule59 ~</div>0.01500.00000.01620.01510.00110.00170.0329332101317173585-0.2672Return Before Taxes Based on NAVReturn After Taxes on DistributionsReturn After Taxes on Distributions and Sale of Fund SharesS&P 500 Index (Reflects no deduction for fees, expenses, or taxes)-0.2672-0.2672-0.17370.16-0.1489-0.1489-0.1250.11352011-01-262011-01-262011-01-262011-01-26<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">STAR Global Buy-Write ETF (NYSE Arca Ticker: VEGA)</font></b></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">INVESTMENT OBJECTIVE</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The STAR Global Buy-Write ETF (the &#8220;Fund&#8221;) seeks consistent repeatable returns across all market cycles.</font></p><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">FUND FEES AND EXPENSES<br /></font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">SHAREHOLDER FEES</font></b><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></i></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">(fees paid directly from your investment) </font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">None</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">ANNUAL FUND OPERATING EXPENSES </font></b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">(expenses that you pay each year as a percentage of the value of your investment)</font></i></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule61 ~</div><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">EXAMPLE<br /></font></b><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">This Example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other funds. This Example does not take into account creation or redemption transaction fees, or the brokerage commissions that you pay when purchasing or selling shares of the Fund. If these fees and commissions were included, your costs would be higher. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</font></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule62 ~</div><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PORTFOLIO TURNOVER</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund&#39;s performance. This rate excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund&#39;s shares. For the period from September 17, 2012, the Fund&#39;s commencement of operations, through the most recent fiscal year ended June 30, 2013, the Fund&#39;s portfolio turnover rate was 40% of the average value of its portfolio. </font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PRINCIPAL INVESTMENT STRATEGIES</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund is primarily a &#8220;fund of funds&#8221; and intends to invest in exchange-traded funds (&#8220;ETFs&#8221;) and exchange-traded notes (&#8220;ETNs&#8221;) that seek to track a diversified basket of global indices and investment sectors that meet certain selection criteria established by Partnervest Advisory Services, LLC (the &#8220;Sub-Advisor&#8221;). The Fund also may invest, subject to the same selection criteria, in exchange-traded products that invest directly in commodities or currencies and that are registered only pursuant to the Securities Act of 1933, as amended, (collectively, with ETFs and ETNs, (&#8220;ETPs&#8221;)). The selection criteria include size, historical track record, diversification among indices, the correlation of an index to other indices and an ability to write covered call options on the particular ETP. The Fund also may invest in individual securities. Individual security selection criteria include fundamental, behavior, qualitative and macro-economic data. The Sub-Advisor may dispose of the Fund&#39;s interest in an ETP or a particular security if it no longer meets the selection criteria.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Sub-Advisor seeks to achieve the Fund&#39;s investment objective by using a proprietary overwrite strategy known as Volatility Enhanced Global Appreciation (&#8220;VEGA&#8221;). VEGA uses the Fund&#39;s portfolio investments in combination with call options on the Fund&#39;s portfolio investments to seek cumulative price appreciation from the portfolio&#39;s global exposure while generating an additional return stream from the sale of covered call and/or cash-secured put options. A covered call option involves holding a long position in a particular asset and writing a call option on that same asset with the goal of realizing additional income from the option premium. A put option is a contract that gives the writer of the option the right to sell a specified amount of the asset underlying the option at a specified price (the &#8220;strike price&#8221;) within a specified time. When a put option is exercised or assigned, the writer of the option is obligated to purchase the requisite amount of the asset underlying the option to complete the sale. A put option is considered cash-secured when the writer of the put option segregates an amount of cash or cash equivalents sufficient to cover the purchase price of the asset underlying the option. To the extent cash and cash equivalents in the Fund&#39;s portfolio serve as collateral for cash-secured put options, such cash and cash equivalents may not be invested in ETPs, additional options, other securities or other similar investments in pursuit of the Fund&#39;s investment objective.</font><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Rather, on a day-to-day basis, such collateral may be invested in U.S. government securities, short-term, high quality fixed income securities, money market instruments, cash, and other cash equivalents with maturities of one year or less, or ETPs that hold such investments.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">PRINCIPAL RISKS OF INVESTING IN THE FUND</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund is subject to a number of risks that may affect the value of its shares, including:</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></b></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Allocation Risk.</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> The Fund&#39;s particular allocations may have a significant effect on the Fund&#39;s performance. Allocation risk is the risk that the selection of ETPs and the allocation of assets among such ETPs will cause the Fund to underperform other funds with a similar investment objective that do not allocate their assets in the same manner or the market as a whole.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Derivatives Risk.</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> The Fund intends to invest in derivatives to a significant extent. 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As a result, the value of an ETN may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in the underlying market (</font><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">e.g.</font></i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">, the commodities market), changes in the applicable interest rates, and changes in the issuer&#39;s credit rating and economic, legal, political or geographic events that affect the referenced market. 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Fund assets covering written options cannot be sold while the option is outstanding, unless replaced with similar assets. As a result, there is a possibility that segregation of a large percentage of the Fund&#39;s assets could affect its portfolio management as well as the ability of the Fund to meet other current obligations.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Premium-Discount Risk.</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> The Fund&#39;s shares may trade above or below their net asset value (&#8220;NAV&#8221;). 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Certain of the Fund&#39;s investments may generate income that is not qualifying income. 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These risks include any combination of the risks described below, as well as certain of the risks described above. 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Commodity-linked derivatives, repurchase agreements, swap agreements and other forms of financial instruments that involve counterparties subject an ETP to the risk that the counterparty could default on its obligations under the agreement, either through the counterparty&#39;s bankruptcy or failure to perform its obligations.</font></p><p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font lang="EN-US" style="font-family:Symbol;font-size:10.0pt;line-height:normal;">&#183;</font><font lang="EN-US" style="font-family:Times New Roman;font-size:7.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Credit Risk</font></u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">. 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An ETP&#39;s investments in, or exposure to, foreign issuers involve certain risks including, but not limited to, risks of adverse changes in foreign economic, political, regulatory and other conditions, or changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges). In certain countries, legal remedies available to investors may be more limited than those available with respect to investments in the United States. 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An ETP may invest in large-capitalization companies. 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An ETP may invest in mid-capitalization companies. Mid-cap companies may be more volatile and more likely than large-cap companies to have limited product lines, markets or financial resources, or depend on a few key employees. 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style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td width="12%" style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td width="1%" style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td width="12%" style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times 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Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td nowrap="nowrap" valign="bottom" width="12%" style="border-bottom:solid black 1.5pt;border-right:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Quarter/Year </font></b></p> </td> </tr><tr> <td valign="bottom" width="75%" style="background:#CCEEFF;border-bottom:solid black 1.5pt;border-left:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Highest Return </font></p> </td> <td valign="bottom" width="12%" style="background:#CCEEFF;border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;"> <p align="right" 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Roman,serif;font-size:10.0pt;line-height:normal;">WCM / BNY MELLON FOCUSED GROWTH ADR ETF (NYSE Arca Ticker: AADR)</font></b></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">INVESTMENT OBJECTIVE&#160;</font></b></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The WCM/BNY Mellon Focused Growth ADR ETF (the &#8220;Fund&#8221;) seeks long-term capital appreciation above international benchmarks such as the BNY Mellon Classic ADR Index, the Fund&#39;s primary benchmark, and the MSCI EAFE Index, the Fund&#39;s secondary benchmark.</font></p><p 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This Example does not take into account creation or redemption transaction fees, or the brokerage commissions that you pay when purchasing or selling shares of the Fund. If these fees and commissions were included, your costs would be higher. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. 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Investors in the Fund could lose money, including the possible loss of the entire principal amount of an investment, over short or even long periods of time.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Large-Capitalization Risk.</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> The Fund may invest in large-capitalization companies. Large-capitalization securities tend to go in and out of favor based on market and economic conditions. During a period when the demand for large-capitalization securities is less than for other types of investments - small-capitalization securities, for instance - the Fund&#39;s performance could be reduced.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Liquidity Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Liquidity risk exists when particular Fund investments are difficult to purchase or sell. This can reduce the Fund&#39;s returns because the Fund may be unable to transact at advantageous times or prices. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Market Risk.</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;"> Due to market conditions, the value of the Fund&#39;s investments may fluctuate significantly from day to day. This volatility may cause the value of your investment in the Fund to decrease.</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Premium-Discount Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund&#39;s shares may trade above or below their NAV. The trading price of the Fund&#39;s shares may deviate significantly from their NAV during periods of market volatility. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Trading Risk. </font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Although the Fund&#39;s shares are currently listed on the Exchange, there can be no assurance that an active trading market for shares will develop or be maintained. In addition, trading in shares of the Fund may be halted because of market conditions or for reasons that, in view of the Exchange, make trading in shares inadvisable. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">As with any fund, there is no guarantee that the Fund will achieve its investment objective.</font></p><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">FUND PERFORMANCE</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The bar chart and table that follow show how the Fund has performed on a calendar year basis and provide an indication of the risks of investing in the Fund. The table also shows how the Fund&#39;s performance compares to the MSCI EAFE Index, which is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. Both the bar chart and the table assume the reinvestment of all dividends and distributions. Past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Updated performance information is available on the Fund&#39;s website at www.advisorshares.com.</font></p><div style="display:none">~ http://www.advisorshares.com/role/RRBarChart71 ~</div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">The Fund&#39;s year-to-date total return as of September 30, 2013 was 13.74%. </font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Best and Worst Quarter Returns (for the period reflected in the bar chart above)</font></b></p> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160;</font></p> <div align="left"><table border="0" cellpadding="0" cellspacing="0" style="border-collapse:collapse;width:100%;"> <tr> <td nowrap="nowrap" valign="top" width="74%" style="border-bottom:solid black 1.0pt;border-left:solid black 1.0pt;border-top:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td nowrap="nowrap" valign="top" width="1%" style="border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td nowrap="nowrap" valign="top" width="12%" style="border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Return </font></b></p> </td> <td nowrap="nowrap" valign="top" width="1%" style="border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td nowrap="nowrap" valign="top" width="12%" style="border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;border-top:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Quarter/Year </font></b></p> </td> </tr> <tr> <td width="74%" style="background:#CCECFF;border-bottom:solid black 1.0pt;border-left:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Highest Return </font></p> </td> <td width="1%" style="background:#CCECFF;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td width="12%" style="background:#CCECFF;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">11.54% </font></p> </td> <td width="1%" style="background:#CCECFF;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td width="12%" style="background:#CCECFF;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">1Q/2012 </font></p> </td> </tr> <tr> <td valign="top" width="74%" style="border-bottom:solid black 1.0pt;border-left:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Lowest Return </font></p> </td> <td valign="top" width="1%" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td valign="top" width="12%" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">-17.90% </font></p> </td> <td valign="top" width="1%" style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">&#160; </font></p> </td> <td valign="top" width="12%" style="border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">3Q/2011 </font></p> </td> </tr> </table></div><p style="border:none;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;padding:0in;text-align:justify;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDING DECEMBER&#160;31, 2012</font></b></p><div style="display:none">~ http://www.advisorshares.com/role/RRSchedule72 ~</div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:normal;">Updated performance information is available on the Fund&#39;s website at www.advisorshares.com.</font></p>0.00750.00000.01770.00010.0253-0.01270.012612866512292766-0.05810.1265Return Before Taxes Based on NAVReturn After Taxes on DistributionsReturn After Taxes on Distributions and Sale of Fund SharesMSCI EAFE Index (Reflects no deduction for fees, expenses, or taxes)0.12650.12810.08510.17320.1010.10140.08790.08412010-07-202010-07-202010-07-202010-07-202.7Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.The Total Annual Fund Operating Expenses and Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement in this fee table may not correlate to the expense ratios in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and Expenses.As with any fund, there is no guarantee that the Fund will achieve its investment objective.The bar chart and table that follow show how the Fund has performed on a calendar year basis and provide an indication of the risks of investing in the Fund.www.advisorshares.comPast performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.Reflects no deduction for fees, expenses, or taxesAfter-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period.a year from the date of this Prospectus.year-to-date total return2013-09-30-0.0338Highest Return2012-12-310.0441Lowest Return2011-03-31-0.11611Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.The Total Annual Fund Operating Expenses and Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement in this fee table may not correlate to the expense ratios in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and Expenses.As with any fund, there is no guarantee that the Fund will achieve its investment objective.Similar to an investment in the Fund, an investment in an Underlying ETF is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.a year from the date of this Prospectus.the Fund is new and, therefore, does not have a performance history for a full calendar year.www.advisorshares.comOf course, once the Fund has performance, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.2.36Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.The Total Annual Fund Operating Expenses and Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement or Recaptured Expense in this fee table may not correlate to the expense ratios in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and Expenses.As with any fund, there is no guarantee that the Fund will achieve its investment objective.The bar chart and table that follow show how the Fund has performed on a calendar year basis and provide an indication of the risks of investing in the Fund.www.advisorshares.comPast performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.Reflects no deduction for fees, expenses, or taxesAfter-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period.a year from the date of this Prospectus.year-to-date total return2013-09-30-0.0102Highest Return2012-03-310.0384Lowest Return2011-09-30-0.07790.43Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.The Total Annual Fund Operating Expenses and Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement in this fee table may not correlate to the expense ratios in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and Expenses.As with any fund, there is no guarantee that the Fund will achieve its investment objective.a year from the date of this Prospectus.A comparison of the Fund’s performance with that of a broad measure of market performance may give some indication of the risks of an investment in the Fund; however, the Fund is new and, therefore, does not have a performance history for a full calendar year.www.advisorshares.comOf course, once the Fund has performance, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.1.8Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.The Total Annual Fund Operating Expenses in this fee table may not correlate to the expense ratios in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and Expenses.As with any fund, there is no guarantee that the Fund will achieve its investment objective.An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.www.advisorshares.comA comparison of the Fund's performance with that of a broad measure of market performance may give some indication of the risks of an investment in the Fund; however, the Fund is new and, therefore, does not have a performance history for a full calendar year.Of course, once the Fund has performance, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.0.33Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.As with any fund, there is no guarantee that the Fund will achieve its investment objective.The bar chart and table that follow show how the Fund has performed on a calendar year basis and provide an indication of the risks of investing in the Fund.Past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.www.advisorshares.comAfter-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period.year-to-date total return2013-09-300.2588Highest Return2012-03-310.1483Lowest Return2012-06-30-0.0608Reflects no deduction for fees, expenses, or taxesa year from the date of this Prospectus.0.93Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.As with any fund, there is no guarantee that the Fund will achieve its investment objective.The bar chart and table that follow show how the Fund has performed on a calendar year basis and provide an indication of the risks of investing in the Fund.www.advisorshares.comPast performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.Reflects no deduction for fees, expenses, or taxesAfter-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period.a year from the date of this Prospectus and for an indefinite period thereafter subject to annual approval by the AdvisorShares Trust Board of Trustees (the "Board").year-to-date total return2013-09-300.1278Highest Return2012-03-310.1439Lowest Return2012-06-30-0.09260.28Most investors will incur customary brokerage commissions when buying or selling shares of the Fund which are not reflected in the table below.The Total Annual Fund Operating Expenses and Total Annual Fund Operating Expenses After Fee Waiver and/or Reimbursements in this fee table may not correlate to the expense ratios in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and Expenses.As with any fund, there is no guarantee that the Fund will achieve its investment objective.An investment in an ETP is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.The bar chart and table that follow show how the Fund has performed on a calendar year basis and provide an indication of the risks of investing in the Fund.Past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.www.advisorshares.comAfter-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period.Year to Date Return2013-09-30-0.0284Highest Return2012-09-300.0318Lowest Return2012-06-300.0102Reflects no deduction for fees, expenses or taxesa year from the date of this Prospectus.Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.6.05The Total Annual Fund Operating Expenses and Total Annual Fund Operating Expenses After Fee Waiver in this fee table may not correlate to the expense ratios in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and Expenses.As with any fund, there is no guarantee that the Fund will achieve its investment objective.An investment in an ETP is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.The bar chart and table that follow show how the Fund has performed on a calendar year basis and provides an indication of the risks of investing in the Fund.Reflects no deduction for fees, expenses, or taxesPast performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.www.advisorshares.comAfter-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period.year-to-date total return2013-09-300.0987Highest Return2012-03-310.0941Lowest Return2012-06-30-0.0644a year from the date of this Prospectus.1.05Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.As with any fund, there is no guarantee that the Fund will achieve its investment objective.A comparison of the Fund's performance with that of a broad measure of market performance may give some indication of the risks of an investment in the Fund; however, the Fund is new and, therefore, does not have a performance history for a full calendar year.www.advisorshares.comOf course, once the Fund has performance, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.a year from the date of this Prospectus.0.37Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.As with any fund, there is no guarantee that the Fund will achieve its investment objective.The bar chart and table that follow show how the Fund has performed on a calendar year basis and provide an indication of the risks of investing in the Fund.www.advisorshares.comPast performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.Reflects no deduction for fees, expenses, or taxesAfter-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period.year-to-date total return2013-09-300.0903Highest Return2012-03-310.0689Lowest Return2011-09-30-0.0705a year from the date of this Prospectus.0.26Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement in this fee table may not correlate to the expense ratios in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include “Acquired Fund Fees and Expenses.”As with any fund, there is no guarantee that the Fund will achieve its investment objective.A comparison of the Fund’s performance with that of a broad measure of market performance may give some indication of the risks of an investment in the Fund; however, the Fund is new and, therefore, does not have a performance history for a full calendar year.www.advisorshares.comOf course, once the Fund has performance, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.a year from the date of this Prospectus.1.14Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement in this fee table may not correlate to the expense ratios in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and Expenses.As with any fund, there is no guarantee that the Fund will achieve its investment objective.A comparison of the Fund’s performance with that of a broad measure of market performance may give some indication of the risks of an investment in the Fund; however, the Fund is new and, therefore, does not have a performance history for a full calendar year.www.advisorshares.comOf course, once the Fund has performance, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.a year from the date of this Prospectus.6.97Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.The Total Annual Fund Operating Expenses in this fee table may not correlate to the expense ratios in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and Expenses.As with any fund, there is no guarantee that the Fund will achieve its investment objective.The bar chart and table that follow show how the Fund has performed on a calendar year basis and provide an indication of the risks of investing in the Fund.www.advisorshares.comPast performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.Reflects no deduction for fees, expenses, or taxesAfter-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period.year-to-date total return2013-09-30-0.2162Highest Return2012-06-300.132Lowest Return2012-03-31-0.1756Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.The Total Annual Fund Operating Expenses and Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement in this fee table may not correlate to the expense ratios in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include “Acquired Fund Fees and Expenses”.0.4As with any fund, there is no guarantee that the Fund will achieve its investment objective.A comparison of the Fund’s performance with that of a broad measure of market performance may give some indication of the risks of an investment in the Fund; however, the Fund is new and, therefore, does not have a performance history for a full calendar year.www.advisorshares.comOf course, once the Fund has performance, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.a year from the date of this Prospectus.0.57Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.As with any fund, there is no guarantee that the Fund will achieve its investment objective.The bar chart and table that follow show how the Fund has performed on a calendar year basis and provides an indication of the risks of investing in the Fund.www.advisorshares.comPast performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.Reflects no deduction for fees, expenses, or taxesAfter-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period.year-to-date total return2013-09-300.2869Highest Return2012-03-310.1304Lowest Return2012-06-30-0.01690.38Most investors will incur customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the table below.The Total Annual Fund Operating Expenses and Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement in this fee table may not correlate to the expense ratios in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and Expenses.Investors in the Fund could lose money, including the possible loss of the entire principal amount of an investment, over short or even long periods of time.The bar chart and table that follow show how the Fund has performed on a calendar year basis and provide an indication of the risks of investing in the Fund.www.advisorshares.comPast performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.Reflects no deduction for fees, expenses, or taxesAfter-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period.a year from the date of this Prospectus.year-to-date total return2013-09-300.1374Highest Return2012-03-310.1154Lowest Return2011-09-30-0.179As a shareholder in certain exchange-traded funds (the 'Acquired Funds'), the Fund will indirectly bear its proportionate share of the fees and expenses of the Acquired Funds. 'Acquired Fund Fees and Expenses' do not reflect the operating expenses of exchange-traded products in which the Fund invests that are not investment companies, including exchange-traded notes and exchange-traded pooled investment vehicles not registered pursuant to the Investment Company Act of 1940, as amended (the '1940 Act').The Total Annual Fund Operating Expenses and Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement in this fee table may not correlate to the expense ratios in the Fund's financial highlights (and the Fund's financial statements) because the financial highlights include only the Fund's direct operating expenses and do not include Acquired Fund Fees and Expenses.AdvisorShares Investments, LLC (the 'Advisor') has contractually agreed to reduce its fees and/or reimburse expenses in order to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, Acquired Fund Fees and Expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 1.50% of the Fund's average daily net assets for at least a year from the date of this Prospectus. The expense limitation agreement may be terminated, without payment of any penalty, (i) by the Trust, for any reason and at any time and (ii) by the Advisor, for any reason, upon ninety (90) days' prior written notice to the Trust at its principal place of business, such termination to be effective as of the close of business on the last day of the then-current one-year period.After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period.As a shareholder in certain exchange-traded funds (the 'Acquired Funds'), the Fund will indirectly bear its proportionate share of the fees and expenses of the Acquired Funds. 'Acquired Fund Fees and Expenses' do not reflect the operating expenses of exchange-traded products that are not investment companies in which the Fund invests, including exchange-traded notes and exchange-traded pooled investment vehicles not registered pursuant to the Investment Company Act of 1940, as amended (the '1940 Act').AdvisorShares Investments, LLC (the 'Advisor') has contractually agreed to reduce its fees and/or reimburse expenses in order to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, Acquired Fund Fees and Expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 1.25% of the Fund's average daily net assets for at least a year from the date of this Prospectus. The expense limitation agreement may be terminated, without payment of any penalty, (i) by the Trust, for any reason and at any time and (ii) by the Advisor, for any reason, upon ninety (90) days' prior written notice to the Trust at its principal place of business, such termination to be effective as of the close of business on the last day of the then-current one-year period.The Total Annual Fund Operating Expenses and Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement or Recaptured Expense in this fee table may not correlate to the expense ratios in the Fund's financial highlights (and the Fund's financial statements) because the financial highlights include only the Fund's direct operating expenses and do not include Acquired Fund Fees and Expenses.AdvisorShares Investments, LLC (the 'Advisor') has contractually agreed to reduce its fees and/or reimburse expenses in order to keep net expenses(excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, Acquired Fund Fees and Expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 1.25% of the Fund's average daily net assets for a year from the date of this Prospectus. Pursuant to the expense limitation agreement, the Advisor is entitled to recapture any fees the Advisor waives and Fund expenses that the Advisor reimburses until the third anniversary of the end of the fiscal year in which such waiver and/or reimbursement occurs, to the extent that such recapture by the Advisor will not cause the Fund to exceed any applicable expense limitation that is in place for the Fund. The expense limitation agreement may be terminated, without payment of any penalty, (i) by the Trust, for any reason and at any time and (ii) by the Advisor, for any reason, upon ninety (90) days' prior written notice to the Trust at its principal place of business, such termination to be effective as of the close of business on the last day of the then-current one-year period.As a shareholder in certain underlying exchange-traded funds (the 'Acquired Funds'), the Fund will indirectly bear its proportionate share of the fees and expenses of the Acquired Funds. 'Acquired Fund Fees and Expenses' do not reflect the operating expenses of exchange-traded products in which the Fund invests that are not investment companies, including exchange-traded notes and exchange-traded pooled investment vehicles not registered pursuant to the Investment Company Act of 1940, as amended (the '1940 Act').The Total Annual Fund Operating Expenses in this fee table may not correlate to the expense ratios in the Fund's financial highlights (and the Fund's financial statements) because the financial highlights include only the Fund's direct operating expenses and do not include Acquired Fund Fees and Expenses.AdvisorShares Investments, LLC (the 'Advisor') has contractually agreed to reduce its fees and/or reimburse expenses to keep the Fund's Total Annual Fund Operating Expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, Acquired Fund Fees and Expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 1.25% of the Fund's average daily net assets for at least a year from the date of this Prospectus. The expense limitation agreement may be terminated, without payment of any penalty, (i) by the Trust, for any reason and at any time and (ii) by the Advisor, for any reason, upon ninety (90) days' prior written notice to the Trust at its principal place of business, such termination to be effective as of the close of business on the last day of the then-current one-year period.The Total Annual Fund Operating Expenses and Total Annual Fund Operating Expenses After Fee Waiver and/or Reimbursements in this fee table may not correlate to the expense ratios in the Fund's financial highlights (and the Fund's financial statements) because the financial highlights include only the Fund's direct operating expenses and do not include Acquired Fund Fees and Expenses.AdvisorShares Investments, LLC (the 'Advisor') has contractually agreed to reduce its fees and/or reimburse expenses in order to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, Acquired Fund Fees and Expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 0.95% of the Fund's average daily net assets for at least a year from the date of this Prospectus. The expense limitation agreement may be terminated, without payment of any penalty, (i) by the Trust, for any reason and at any time and (ii) by the Advisor, for any reason, upon ninety (90) days' prior written notice to the Trust at its principal place of business, such termination to be effective as of the close of business on the last day of the then-current one-year period.As a shareholder in certain exchange-traded funds (the 'Acquired Funds'), the Fund will indirectly bear its proportionate share of the fees and expenses of the Acquired Funds. 'Acquired Fund Fees and Expenses' do not reflect the operating expenses of exchange-traded products in which the Fund invests that are not investment companies, including exchange-traded notes and certain exchange-traded pooled investment vehicles not registered pursuant to the Investment Company Act of 1940, as amended (the '1940 Act').The Total Annual Fund Operating Expenses and Total Annual Fund Operating Expenses After Fee Waiver in this fee table may not correlate to the expense ratios in the Fund's financial highlights (and the Fund's financial statements) because the financial highlights include only the Fund's direct operating expenses and do not include Acquired Fund Fees and Expenses.AdvisorShares Investments, LLC (the 'Advisor') has contractually agreed to reduce its fees and/or reimburse expenses in order to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, Acquired Fund Fees and Expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 1.35% of the Fund's average daily net assets for at least a year from the date of this Prospectus. The expense limitation agreement may be terminated, without payment of any penalty, (i) by the Trust, for any reason and at any time and (ii) by the Advisor, for any reason, upon ninety (90) days' prior written notice to the Trust at its principal place of business, such termination to be effective as of the close of business on the last day of the then-current one-year period.AdvisorShares Investments, LLC (the 'Advisor') has contractually agreed to reduce its fees and/or reimburse expenses to keep the Fund's Total Annual Fund Operating Expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, Acquired Fund Fees and Expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 0.75% of the Fund's average daily net assets for at least a year from the date of this Prospectus. The expense limitation may be terminated, without payment of any penalty, (i) by the Trust, for any reason and at any time and (ii) by the Advisor, for any reason, upon ninety (90) days' prior written notice to the Trust at its principal place of business, such termination to be effective as of the close of business on the last day of the then-current one-year period.AdvisorShares Investments, LLC (the 'Advisor') has contractually agreed to reduce its fees and/or reimburse expenses in order to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, Acquired Fund Fees and Expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 1.35% of the Fund's average daily net assets for at least a year from the date of this Prospectus. Pursuant to the expense limitation agreement, the Advisor is entitled to recapture any fees the Advisor waives and Fund expenses the Advisor reimburses until the third anniversary of the end of the fiscal year in which such waiver and/or reimbursement occurs, to the extent that such recapture by the Advisor will not cause the Fund to exceed the applicable expense limitation in place for the Fund. The expense limitation agreement may be terminated, without payment of any penalty, (i) by the Trust, for any reason and at any time and (ii) by the Advisor, for any reason, upon ninety (90) days' prior written notice to the Trust at its principal place of business, such termination to be effective as of the close of business on the last day of the then-current one-year period.The Total Annual Fund Operating Expenses and Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement in this fee table may not correlate to the expense ratios in the Fund's financial highlights (and the Fund's financial statements) because the financial highlights include only the Fund's direct operating expenses and do not include 'Acquired Fund Fees and Expenses.'AdvisorShares Investments, LLC (the 'Advisor') has contractually agreed to reduce its fees and/or reimburse expenses in order to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, Acquired Fund Fees and Expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 1.49% of the Fund's average daily net assets for at least a year from the date of this Prospectus. The expense limitation agreement may be terminated, without payment of any penalty, (i) by the Trust, for any reason and at any time and (ii) by the Advisor, for any reason, upon ninety (90) days' prior written notice to the Trust at its principal place of business, such termination to be effective as of the close of business on the last day of the then-current one-year period.As a shareholder in certain exchange-traded funds (the 'Acquired Funds'), the Fund will indirectly bear its proportionate share of the fees and expenses of the Acquired Funds. 'Acquired Fund Fees and Expenses' do not reflect the operating expenses of exchange-traded products in which the Fund invests that are not investment companies, including ETNs and exchange-traded pooled investment vehicles not registered pursuant to the Investment Company Act of 1940, as amended (the '1940 Act').The Total Annual Fund Operating Expenses and Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement in this fee table may not correlate to the expense ratios in the Fund's financial highlights (and the Fund's financial statements) because the financial highlights include only the Fund's direct operating expenses and do not include 'Acquired Fund Fees and Expenses'.AdvisorShares Investments, LLC (the 'Advisor') has contractually agreed to reduce its fees and/or reimburse expenses in order to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, Acquired Fund Fees and Expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 1.85% of the Fund's average daily net assets for at least a year from the date of this Prospectus. The expense limitation agreement may be terminated, without payment of any penalty, (i) by the Trust, for any reason and at any time and (ii) by the Advisor, for any reason, upon ninety (90) days' prior written notice to the Trust at its principal place of business, such termination to be effective as of the close of business on the last day of the then-current one-year period.AdvisorShares Investments, LLC (the 'Advisor') has contractually agreed to reduce its fees and/or reimburse expenses in order to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, Acquired Fund Fees and Expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 0.99% of the Fund's average daily net assets for at least a year from the date of this Prospectus. The expense limitation agreement may be terminated, without payment of any penalty, (i) by the Trust, for any reason and at any time and (ii) by the Advisor, for any reason, upon ninety (90) days' prior written notice to the Trust at its principal place of business, such termination to be effective as of the close of business on the last day of the then-current one-year period.